you are considering purchasing a small building for $2975000. expected first year PGI 520,000 with Vacancy loss equal to 15% of PGI. Operatong expenses and capital expediture expected to be 40% and 5% of EGI respectively. the mortgage on property is 75% LTV at 6% interest rate with 20 yr term with monthly compounding.

a) what is the required equity investment( what is the required down payment)?

b) estimate NOI, debt service paid in a year, and before tax cash flow.