A 25-year-old, 100,000 SF warehouse in Kennesaw is for sale for $8,000,000, Using the numbers below...

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A 25-year-old, 100,000 SF warehouse in Kennesaw is for sale for $8,000,000, Using the numbers below what is the Gross Possible Income, Adjusted Gross Income, Net Operating Income, and Cash Flow. What is the Asking Cap Rate (ROR), Return on Equity, Debt Coverage Ratio, and Asking Price Per SF? If you want at least an 8% return on your investment how much would you pay for the complex? Considering the asking price is this a good deal for you? Show all your math in detail: Basic Financial Information: Income-100,000 Taxes-$50,000/ yr. Repair & Maintenance - $60,000/ yr. Legal $15,000/ yr. Amortization - $4,500/ yr. Insurance-$10,000/ yr. Utilities-$65,000/ yr. Management - $25,000/ yr. Capital Expenses - $40,000.00 Vacancy/ Credit Loss -15% Depreciation - $33,000/ yr. Other Income - $2,500. Equity (30%) - $2,400,000. Loan (75%) - $5,600,000 @ 6%, Interest Only with 5-year balloon Debt Service - $336,000. / yr. SQ FT leased at $10/SF/YR ☺ A 25-year-old, 100,000 SF warehouse in Kennesaw is for sale for $8,000,000, Using the numbers below what is the Gross Possible Income, Adjusted Gross Income, Net Operating Income, and Cash Flow. What is the Asking Cap Rate (ROR), Return on Equity, Debt Coverage Ratio, and Asking Price Per SF? If you want at least an 8% return on your investment how much would you pay for the complex? Considering the asking price is this a good deal for you? Show all your math in detail: Basic Financial Information: Income-100,000 Taxes-$50,000/ yr. Repair & Maintenance - $60,000/ yr. Legal $15,000/ yr. Amortization - $4,500/ yr. Insurance-$10,000/ yr. Utilities-$65,000/ yr. Management - $25,000/ yr. Capital Expenses - $40,000.00 Vacancy/ Credit Loss -15% Depreciation - $33,000/ yr. Other Income - $2,500. Equity (30%) - $2,400,000. Loan (75%) - $5,600,000 @ 6%, Interest Only with 5-year balloon Debt Service - $336,000. / yr. SQ FT leased at $10/SF/YR ☺

Answer rating: 100% (QA)

To calculate the various financial metrics and determine if the deal is favorable we will use the gi... View the full answer