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You are considering purchasing a small office building for $ 3 , 4 7 5 , 0 0 0 . The expected first - year

You are considering purchasing a small office building for $3,475,000. The expected first-year PGI is $750,000w? vacancy loss equal to 10% of PGI. Operating and Capital expenditures are expected to be 40% and 5% of EGI respectively. The mortgage payment is 70% LTV at a 6% interest rate w/25-year term w/ monthly compound.
A. What is required equity investment ( what is the down payment)
B. Estimate NOI, the debt service paid in a year, and Before Tax Cash Flow.
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