Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Authors: Laurence S. Seidman

1st Edition

0073375748, 978-0073375748

More Books

Students also viewed these Finance questions

Question

What is wrong with the MOV DS , SS instruction?

Answered: 1 week ago

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago

Question

Which form of proof do you find least persuasive? Why?

Answered: 1 week ago