Question
You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI= $20,000, vacancy rates are 8%, and
You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI= $20,000, vacancy rates are 8%, and operating expenses are $8,100.
1. Calculate the mortgage constant.
2. Calculate the annual debt service.
3. Calculate the EGI, NOI, and BTCF
4. Calculate the overall capitalization rate, using the band-of-investment approach.
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1 mortage constant is nothing but the ratio of the annual amount of debt servi...
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
