You are considering purchasing a small office building for $1,975,000

Your expectations include:

• First-year gross potential income of $340,000;
• Vacancy & collection losses equal to 15% of PGI;
• Operating expenses = 40% of EGI;
• Capital expenditures = 5% of EGI
• Mortgage (75% LTV) @ 7%
  • Debt amount = $1,481,250.00
• Mortgage will be amortized over 25 years with a monthly payment
  • Monthly payment = $10,469.17
• Total up-front financing costs = 2% of the loan amount
  • What will be the Net loan proceeds to borrower?
• What is the required equity investment

Can you teach me how to do this on excel, thank you!