You are considering purchasing a small office building for $$2,625,000.$ The expected first$-$year potential gross income is $$600,000$ with a vacancy Operating expenses and Capital expenditures are expected to be $40\%$ and $5\%$ of the EGI respectively. The mortgage on the property is $70\%$ LTV at a $6\%$ interest rate with a $25-y$ ear term with monthly compounding.

What is the required equity investment $($what is the required down payment$)?(3$ points$)$

B$.$ Estimate NOI, the debt service paid in a year and the Before Tax Cash Flow. $(6$ points$)$