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Your medical office building is fully rented and has four tenants paying $1,250 per month. Operating expenses are $23,750 annually. You take out a first
Your medical office building is fully rented and has four tenants paying $1,250 per month. Operating expenses are $23,750 annually. You take out a first mortgage with a local bank with a monthly debt service payment of $1,500. The seller takes back a second mortgage, and your debt service on this second mortgage is $625 per month. Assume vacancy and bad debt allowance of 3%. What is your investor before tax cash flow
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