Question
You are considering the purchase of a new home. You want a fixed-rate fully amortizing loan with a term of 30 years. Your monthly payment
You are considering the purchase of a new home. You want a fixed-rate fully amortizing loan with a term of 30 years. Your monthly payment cannot be more than $1,103 and the current interest rate is 7.7%. What is the maximum amount the bank will lend you?
You would like to sell your investment property. It currently has an annual net operating income of $49,868 with a free cash flow of $2,744. You estimate that properties have appreciated at 3.52% over the last year. Your real estate agent has informed you that similar properties have sold for a cap rate of 10.31%. What is your estimated current value of the property?
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