Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Use the following information to create a 1-year cash flow and calculate the following metrics: LTV, DSCR, DY, Breakeven point, Going in Cap Rate and

Use the following information to create a 1-year cash flow and calculate the following metrics:

LTV, DSCR, DY, Breakeven point, Going in Cap Rate and Cash on Cash return

Total Acquisition Price is $1,056,000

Property consists of eight office suites, Three on the first floor and five on the second floor

Contract rents are: two suites at $1,800/mo, one at $3,600/mo and five at $1,560/mo

Vacancy and collection losses are 10% per year

Operating expenses are 40% of EGI

CapEx are 5% of EGI

First mortgage loan is $792,000

Annual mortgage rate is 6.5%

Loan amortization is 30 years

Total up-front financing cost are 3% of loan amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Finite Mathematics and Its Applications

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair

12th edition

978-0134768632

Students also viewed these Finance questions

Question

What are the different techniques used in decision making?

Answered: 1 week ago