You are analyzing an investment opportunity with the following information:

• Initial purchase price: $450,000
• Expected holding period: 15 years
• NOI is estimated to be $36,000/year for the first seven years and increase to $42,000/year for the last 8 years.
• Loan amount: $400,000 (interest only)
• Monthly mortgage payment is $28,800/year.
• Expected sale (assume no sale expenses) at the end of 15 years at the ``going-out'' cap rate of 8%
• Outstanding loan balance at the end of 15 years: $285,200

How much is the initial equity investment amount? (5 points)