Question
You buy an apartment building for $3 million. You make a down payment of $750,000 and finance the remaining $2,250,000 with a 15-year Mortgage at
You buy an apartment building for $3 million. You make a down payment of $750,000 and finance the remaining $2,250,000 with a 15-year Mortgage at 6%. Annual rental income is $500,000 and annual operating expenses are $200,000. . Calculate:
A. Monthly mortgage payment
B. Net Operating Income (NOI)
C. The Capitalization Rate (Cap Rate)
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
978-0132148238
