Given this information calculate your year 1 cash flows, initial equity investment and the following ratios:...
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Given this information calculate your year 1 cash flows, initial equity investment and the following ratios: Going-in Cap rate, Cash-on-cash, EGIM, OER, LTV, DCR, and DYR. Knight's Plaza Purchase Price: $1,250,000 Acquisition Costs: $55,000 Year 1 EGI: $145,700 Year 1 OpEx: $35,000 Loan Information: Loan Amount: $875,000 Minimum DSCR: 1.35 Interest Rate: 6.5% Amortization Period: 20 years Loan Term: 10 years Loan Costs: 2% of loan Given this information calculate your year 1 cash flows, initial equity investment and the following ratios: Going-in Cap rate, Cash-on-cash, EGIM, OER, LTV, DCR, and DYR. Knight's Plaza Purchase Price: $1,250,000 Acquisition Costs: $55,000 Year 1 EGI: $145,700 Year 1 OpEx: $35,000 Loan Information: Loan Amount: $875,000 Minimum DSCR: 1.35 Interest Rate: 6.5% Amortization Period: 20 years Loan Term: 10 years Loan Costs: 2% of loan
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Answer rating: 100% (QA)
SOLUTION To calculate the year 1 cash flows we need to first calculate the net operating income NOI NOI EGI OpEx NOI 145700 35000 110700 Next we need ... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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