Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are buying a multifamily property. You have spoken to your bank, and they've determined that they can give you 75% loan to value on
You are buying a multifamily property. You have spoken to your bank, and they've determined that they can give you 75% loan to value on your purchase at 4%.
a.) If you need to get a 15% return on your equity investment, what is the minimum Rate that you can pay for your asset?
b.) If you are to calculate a 25% return on your purchase, at what cap rate are you buying the property?
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