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Use the following information to calculate the Various RATIOS that are useful in the Real Estate Investment Decision making process (see Ch 11 of the
Use the following information to calculate the Various RATIOS that are useful in the Real Estate Investment Decision making process (see Ch 11 of the Text) Before Tax Cash Flow (BTCF) FOR After Tax Cash Flow (ATCF) YR-1 FOR YR 1 $ 96,250.00 $47,733.00 PGI $ 175,000.00 NOIE Vacancy @ 8,750.00Int Exp: 59? EGI = - Op Ex 166,250.00 'Depr= 70,000.00 Taxable $36,363.64 $ 12,153.36 Income- 96,250.00 | Taxes @ 30%: | $ 3,646.01 $ 38,693.00 $ 35,046.99 NOI -DS BTCF- PGI Potential Gross Income OP Ex Operating Expenses DS Debt Service (Mortgage Pmts) CF Int Exp Interest expenses $57,557.00 BTCF- $38,693.00 ATCF -Effective Gross Income NOIE Net Operating Income Cash Flow epr- depreciation PGI Potential Gross Income EGI- Effective Gross Income The above Property was purchased for $ 1.00 million at a Loan/Value Ratio of 80% at a fixed mortgage Rate of 6% over 30 years Now match your calculated Values of Ratios with the given Answers
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