You are purchasing a property that has an initial NOI of $500,000 that will grow at 3%
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You are purchasing a property that has an initial NOI of $500,000 that will grow at 3% per year. It is being purchased with a 6% cap rate. You can finance your acquisition with financing equal to 75% of the purchase price at 4.625%, payable monthly, fully amortizing over 30 years. You plan to sell the property at 6.5% cap rate at the end of year 5 based on year's 6 NOI. What is the IRR to your equity?
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date: