Question
Purchase Price: $1,250,000 Acquisition Costs: $55,000 Hold Period: 5 years Year 1 PGI: $155,000 Projected PGI annual growth: 3.5% Annual Vacancy & Loss: 6% Year
Purchase Price: $1,250,000
Acquisition Costs: $55,000
Hold Period: 5 years
Year 1 PGI: $155,000
Projected PGI annual growth: 3.5%
Annual Vacancy & Loss: 6%
Year 1 OpEx: $35,000
Projected OpEx annual growth: 3%
Project Exit Cap Rate: 8.75%
Cost of Sale: 5%
Loan Information:
Maximum LTV: 70%
Minimum DSCR: 1.35
Interest Rate: 6.5%
Amortization Period: 20 years
Loan Term: 10 years
Loan Costs: 2% of loan
Discount Rate: 12%
Provide a full project return summary that includes: BT NPV (Levered and Unlevered), BT IRR (Levered and Unlevered) and Cash on Cash (Levered and Unlevered), as whether or not to invest in this property and why or why not?
Excel please
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