Question: 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 the following ratios: Going-in Cap rate, Cash-on-cash, EGIM, OER, LTV, DCR,

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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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 full answer

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