To assess anticipated cash flows and investment returns for 18512 Spicer Lake Ct, Reno, NV, we will utilise a discounted cash flow model and a financial proforma. We'll pretend it's July 2014 and we're trying to decide whether buying the Spicer single-family home or a stock portfolio will yield a higher return. To establish our baseline return for the single-family home, we begin with the following hypotheses. Assumptions: $265,000 was paid for the item. $2,800 is the monthly rent Rate of rent growth: 3% 10% vacancy rate (of PGI) Opex= 30% (of EGI) (of EGI) Capex= 5% (of EGI) Purchasing expenses equal 2%. Cost of sales = 3% Rate of capital gains tax: 20% 25% is the depreciation recapture tax rate. You pay a 24% ordinary income tax rate. 80% LTV ratio 5% annual loan interest 8 years are the holding period. Yearly miscellaneous income is $0, and the growth rate of MI is 0%. Loan term is 30 years. Residential property depreciation equals 27.5 years 10% of the total purchase price is for land. Price anticipated at sale: $554,000.

What is the original assumptions' baseline ATIRR?

b. What is the balance of your mortgage if you decide to sell the home after month 48?

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