1 points

QUESTION 12

[The information presented here applies to questions 12 -- 15] You have purchased a small multi-family building in Montclair, NJ for $2M. You expect that NOI in your first year of ownership will be $175,000, what is the initial cap rate?

1 points

QUESTION 13

Your acquisition was financed with a 10-year loan form $1.5M offering a 5% interest rate and a 20-year amortization period. If payments are made on an annual basis, what is the mortgage interest deduction you receive in your first year of ownership?

1 points

QUESTION 14

If the land value is assessed at $625,000, what is the depreciation allowance in your first year of ownership?

1 points

QUESTION 15

If you are in a 25% marginal tax bracket and do not plan to make any capital expenditures in your first year of ownership, what is your tax liability in the first year?