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Think of this question like a puzzle. I need to find what is red , Debt Service (Principal & Interest) for a 1 year
Think of this question like a puzzle. I need to find what is red , "Debt Service (Principal & Interest) " for a 1 year period.
I know the answer is $284,692.22/year BUT I need to undstand how that number was calculated with the info given.
| Potential Gross Income | $ 750,000.00 | ||
| Vacancy | $ (75,000.00) | ||
| Effective Gross Income | $ 675,000.00 | ||
| Operating Expenses | $ (303,750.00) | ||
| Net Operating Income | $ 371,250.00 | ||
| Debt Service (P&I) | |||
| Before Tax Cash Flow | |||
| Loan Amount | $ 3,750,000.00 | ||
| Down Payment | $ 1,250,000.00 | ||
| Purchase Cap Rate | 7.43% | ||
| Debt Yield | 9.90% | ||
| Debt Coverage Ratio | |||
| Equity Yield | |||
| Purchase Price | $ 5,000,000.00 | |||
| Potential Gross Income | $ 750,000.00 | |||
| Vacancy Percentage | 10% | |||
| Operating Expenses (%) | 45% | |||
| Loan Info | ||||
| Loan To Value Ratio | 75% | |||
| Annual Interest Rate | 4.50% | |||
| Term (months) | 240 | |||
| Payoff Month | 120 | |||
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