An Apartment Complex with the following Particulars is bought by JK Investors for $1,200,000 by borrowing $300,000
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Question:
An Apartment Complex with the following Particulars is bought by JK Investors for $1,200,000 by borrowing $300,000 at a rate of 5% per year for 10 years (assume annual payments).
Number of apartments: 10
Rent per month per apartment: $900.00
Expected vacancy and collection loss: 10 percent
Annual maintenance: $18,000
Property taxes: $9,000
Property insurance: $7,000
Management: $8,000
Capital expenditures: $5,000
Other operating expenses: $3,000
Calculate:
- A) Monthly and Annual Mortgage Payment
- B) Effective Gross Income
- C) Net Operating Income
- D) Effective Gross Income Multiplier
- E) Overall Capitalization Rate
- F) Equity Dividend Rate
Expert Answer:
A Monthly Mortgage Payment Given Loan amount 300000 Interest rate 5 Number of years 10 years Using t... View the full answer
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