Question
You are considering the purchase of a property with the following information: Gross Annual Rents = $96,666 Vacancy Rate = 5.62% Net Operating Income =
You are considering the purchase of a property with the following information:
Gross Annual Rents = $96,666
Vacancy Rate = 5.62%
Net Operating Income = $75,535
Property Management Fee = 2.06%
Purchase Price = $448,204
Monthly Mortgage Payment = $4,102
Property financed at 75% LTV.
What is your cash on cash return for the first year?
Answer should be formatted as a dollar amount rounded to the nearest cent.
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
