Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q 3 Suppose a property has an annual NOI of $ 1 0 0 , 0 0 0 , a cap rate of 4 %

Q3
Suppose a property has an annual NOI of $100,000, a cap rate of 4%, lenders are willing to make a loan with up to 75% LTV, and a DCR of up to 1.25. An investor is considering a 30-year fully amortizing Fixed Rate Mortgage, with at a 7% annual interest rate, compounded annually, with annual payments. What is the maximum loan this investor can get?
04
investment?
Suppose an investor buys a property for $5,000,000. He uses a 75% LTV loan. What is his initial equity
Q5
Suppose an investor buys a property for $5,000,000. He uses a 75% LTV loan, with an annual interest rate of 7.5%, the loan is fully amortizing and has a 30 ear term with monthly payments and with monthly compounding. What is the annual debt service for this loan?
Q6
Suppose an investor buys a property for $5,000,000. He uses a 75% LTV loan, with an annual interest rate of 7.5%, the loan is fully amortizing and has a 30 ear term with monthly payments and with monthly compounding. What is the remaining mortgage balance after 24 months of payments?
07
If up-front financing costs on a 30-year loan total $10,000, what is the maximum amount that the investor can deduct each year when calculating taxable income from rental operations?
08
If up-front financing costs on a 30-year loan total $10,000, if the loan is prepaid at the end of year 5, what is the maximum amount that the investor can deduct that year when calculating taxable income from rental operations?
09
You purchase an office building for $5,000,000. What is the depreciation that you can deduct when estimating your annual tax liability if 75% of the purchase price is allocated to depreciable real property?
010
You purchase an apartment building for $5,000,000. What is the depreciation that you can deduct when estimating your annual tax liability if 75% of the purchase price is allocated to depreciable real property?
Q11
You are offered a 7-year lease at $20.00 ps per year with 24 months free rent and your discount rate is 9%.
What is the annual equivalent level rent?

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

Money Locates You

Authors: Joan Ekobena

1st Edition

1774821257, 978-1774821251

More Books

Students also viewed these Finance questions

Question

3. Explain the forces that influence how people handle conflict

Answered: 1 week ago