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You invested $500,000 of cash equity to purchase a property and borrowed $1,000,000. You sell the property 1 year later for $1,750,000. Assuming no BTCF,
You invested $500,000 of cash equity to purchase a property and borrowed $1,000,000. You sell the property 1 year later for $1,750,000.
- Assuming no BTCF, what is your total annual return?
- If the same property had BTCF of $50,000, what is your total annual return?
- If the same property had an NOI of $100,000 and ADS (annual debt service) of $75,000, what is your total annual return?
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