Question: Based on the below data, what is the expected IRR of your investment assuming it was financed 80% with bank debt. (Round to two decimals)

Based on the below data, what is the expected IRR of your investment assuming it was financed 80% with bank debt. (Round to two decimals)

  • Net operating income $150,000
  • Sell the property in five years.
  • Assume the net operating income increases at 2.0%
  • Assume the terminal cap rate is 7.50%
  • Assume the going in cap rate was 7.0%
  • Discount rate on similar investments 10%
  • Bank financing is offered at 5% for 20 years

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