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What is the expected BTER? Total acquisition price: $1,495,000. Property consists of 10 apartments, 5 on the first floor and 5 on the second. Contract
What is the expected BTER?
Total acquisition price: $1,495,000. Property consists of 10 apartments, 5 on the first floor and 5 on the second. Contract rents: 5 suites at $2,365 per month and 5 at $2,465 per month. Annual market rent increases: 3.35 % per year Vacancy and collection losses: 8.75% per year Operating expenses: 38% of effective gross income each year. Capital expenditures: 7.75% of effective gross income each year. Expected holding period: 5 years. Property value is expected to increase 2.5% per year Selling expenses are expected to be 4.25% of selling price. Loan information: 80% LTV Annual mortgage interest rate: 4.75% Loan term and amortization period: 30 years Total upfront financing costs: 3.75% of loan amount. Total acquisition price: $1,495,000. Property consists of 10 apartments, 5 on the first floor and 5 on the second. Contract rents: 5 suites at $2,365 per month and 5 at $2,465 per month. Annual market rent increases: 3.35 % per year Vacancy and collection losses: 8.75% per year Operating expenses: 38% of effective gross income each year. Capital expenditures: 7.75% of effective gross income each year. Expected holding period: 5 years. Property value is expected to increase 2.5% per year Selling expenses are expected to be 4.25% of selling price. Loan information: 80% LTV Annual mortgage interest rate: 4.75% Loan term and amortization period: 30 years Total upfront financing costs: 3.75% of loan amountStep by Step Solution
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