You have purchased a small multi-family building in Montclair, NJ for $2M. You expect that NOI in your first year of ownership will be $175,000, what is the initial cap rate?

Your acquisition was financed with a 10-year loan form $1.5M offering a 5% interest rate and a 20-year amortization period. If your marginal income tax rate is 30% and payments are made on an annual basis, what is the value of the mortgage interest deduction you receive in your first year of ownership?

Assuming no capital expenditures, TI or leasing commissions, what is the equity dividend rate for the first year of ownership expressed in percentage terms?