Question
You buy an apartment building for $2,000,000. You make a down payment of $1,000,000 and finance the remaining $1,000,000 with a 15-year Mortgage at 6%.
You buy an apartment building for $2,000,000. You make a down payment of $1,000,000 and finance the remaining $1,000,000 with a 15-year Mortgage at 6%. Annual rental income is $500,000, annual operating expenses are $200,000 and interest expense is $50,000.
Calculate:
Monthly Mortgage payment
Net operating income (NOI)
The capitalization rate (Cap Rate)
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Lending Investments And The Financial Crisis
Authors: Elena Beccalli, Federica Poli
1st Edition
1349564982, 978-1349564989
