Question 6

[The information presented here applies to questions 6 -- 10] You acquired a large multi-family property for $8M and financed 60% of the purchase price with a 5-year mortgage with a 20-year amortization period. How much did you borrow?

1 points

Question 7

What is your mortgage payment if the loan offers a 5% interest rate and payments are made on an annual basis?

1 points

Question 8

What is the associated debt coverage ratio (DCR) if NOI in the first year is 500,000?

1 points

Question 9

What is the mortgage interest deduction for the first year of the holding period?

1 points

Question 10

If you are in the 35% marginal tax bracket, how much is your tax liability reduced by taking the mortgage interest deduction?

I need help with questions 9.