Question: 271 HW #3 You are considering purchasing a small office building for $1 975, 000 Your expectations include First year gross potential income of 5340

271 HW #3 You are considering purchasing a small office building for $1 975, 000 Your expectations include First year gross potential income

of 5340 090 Vacancy & collection losses equal to 159 6 of

PG ; Operating expenses = 409 6 of EG Capital expenditures =

271 HW #3 You are considering purchasing a small office building for $1 975, 000 Your expectations include First year gross potential income of 5340 090 Vacancy & collection losses equal to 159 6 of PG ; Operating expenses = 409 6 of EG Capital expenditures = 596 of EG 51 481 250 mortgage ( 759 LIVE 794 Mortgage will be amortized over 25 years with a monthly payment of $10 469 .17 Total up front financing costs - 206 of the loan amount Required equity investment is $523 375 51 975 000 (51 481 250 - 529 , 6251 1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q1. Calculate Going-in Cap Rate (Ro): Q2. Calculate the Equity Dividend Ratio (EDR): Q3. Calculate the Effective Gross Income Multiplier (EGIM): Q4. Calculate the Operating Expense Ratio (OER): Q5....

REAL ESTATE HW #3 .You are considering purchasing a small office building for Q1. Calculate Going-in Cap Rate (Ro): 340,000 51,000 $1,975,000 Your expectations include 289,000 115,600 14,450 158,950...

NAME Due on Ma 14 Before 340,000 51,000 21. Calculate Going in Cop Rat Rob REAL ESTATE PC VC -M -EG O CAPEX NO -OS -DTCH 289,000 115,600 14,450 158,950 125.630 33.320 22. Catrudne the faulty Puddend...

- You are considering purchasing a small office building for $1,800,000 - Your expectations include: - First-year gross potential income of $350,000; - Vacancy \& collection losses equal to 8% of...

Real Estate Finance. Can you please show how to compete through excel? NAME Due on Ma 14 Before PC VC -M 340,000 51,000 21. Calculate Going in Cop Rat Rob REAL ESTATE CAPEX NO -OS -DTCH 289,000...

use provided information, answer in Excel and provide steps, thank you. 3. Calculate the Effective Gross Income Multiplier (EGIM) 4. Calculate the Operating Expense Ratio (OER) 5. Calculate the Debt...

Use the information below to answer the following 3 questions (i.e., questions 38 - 40) O You are considering purchasing a small office building for $1,900,000 Your expectations include: - First-year...

Use the following information to answer questions You are considering purchasing a small office building for $1,855,000 Your expectations include: First-year gross potential income of $350,000;...

Same Question, but what answers for 19 & 20? Calculating Debt Yield Ratio (DYR) and Debt Coverage Ratio (DCR). Thanks in Advance! nvesment ratios Use the following information to answer questions...

The half-life of radioactive strontium-90 is approximately 31 years. In 1964, radioactive strontium-90 was released into the atmosphere during testing of nuclear weapons, and was absorbed into...

Using the diagram for Problem 7, answer the following questions: a. What do Symbols 1 and 2 represent? b. What does the operation invoking Symbols 3 and 4 depict? c. What does the operation involving...

Can you give me some examples of environmental analysis situations? Like Coffee company?

1. General obligation bonds with a par value of $10 million are issued at par to finance the construction of community center building. The building is constructed for a total cost of $9.9 million,...

abc company has calculated its 2020 basic earnings per share as $257 it has only one dilutive instrument outstanding, a convertible bond issue the result of the diluted earnings per share computation...

This is a classic retirement problem. A time line will help in solving it. Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65. She...

The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Brass for the year ended 30 June 2020, amounted to $55,000 including the following revenue and...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Why the same affordances have different effects on various users and non-users? Could these effects get achieved using different affordances and mechanisms?

What is the role of organizational culture, distributed cognition, social material practice, affordances, technology and judgement in strategic decision-making? How does organizational culture affect...

Utilize the Power Matrix (chapter 10) to evaluate the role of the Chief Strategist and the Decision Support System in strategic decision-making. How is power redistributed?