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You buy an apartment building for $5,000,000. You make a down payment of $1,000,000 and finance the remaining $4,000,000 with a 15-year Mortgage at 7%.
You buy an apartment building for $5,000,000. You make a down payment of $1,000,000 and finance the remaining $4,000,000 with a 15-year Mortgage at 7%. Annual rental income is $1,000,000, annual operating expenses are $300,000 and interest expense is $50,000. . Calculate:
A. Monthly mortgage payment
B. Net Operating Income (NOI)
C. The Capitalization Rate (Cap Rate)
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