Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What are the sales price, sales expense, sales proceeds, principal balance, and reversion cash flow? Purchase Price 2,000,000 Renovation 1,000,000 Total Project Costs $3,000,000 Total
What are the sales price, sales expense, sales proceeds, principal balance, and reversion cash flow?
Purchase Price | 2,000,000 |
Renovation | 1,000,000 |
Total Project Costs | $3,000,000 |
Total Units | 12 |
Avg SF / Unit | 1,000 |
Leasable SF | 12,000 |
Operating Assumptions | |
Rent ($/LSF) | $1.94 |
Annual Rent Growth | 3.0% |
General Vacancy | 6.0% |
Operating Expenses ($/GSF) | |
Annual Expense per unit | $6,500 |
Monthly Op Expense/ Unit | $6,500 |
Total Annual Operating Expenses | |
Annual Expense Growth | 2.0% |
Financing Assumptions | |
Loan to Cost | 75.0% |
Interest Rate | 5.0% |
Amortization | 25 years |
Loan Amount | 2,250,000 |
Equity Amount | 750,000 |
Monthly Debt Service | |
Annual Debt Service | |
Exit Assumptions | |
Terminal Cap Rate | 6.5% |
Holding Period | 5 years |
Sales Expense | 3.0% |
Desired Leveraged IRR | 15% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started