Question: I need help with 3 thanks! 3. The NOI for a small income property is expected to be $150,000 for the first year. Financing will

I need help with 3 thanks!
3. The NOI for a small income property is expected to be $150,000 for the first year. Financing will be based on a 1.2 debt coverage ratio (DCR) applied to the first year NOI, will have a 10% interest rate, and will be amortized over 20 years with monthly payments. The NOI will increase 3% per year after the first year. The investor plans to hold the property for five years. The resale price is estimated by applying a 9% terminal cap rate to the year 6 NOI. Investors require a 12% rate of return on equity for this type of property. a. What is the present value of the equity interest in the property? b. What is the total present value of the property (mortgage plus equity)? 4. A property is forecasted to generate annual rental income of $110,000 in year 1. Vacancy rate is expected to be 5%, there is also a 5% management fee. Other operating expenses will total $19,000 for year 1. Rent is expected to grow at 8% in years 2 and 3, and other operating expenses are expected to grow at 5% in years 2 and 3. You believe that you can sell the property at the end of year 3 for $1,220,000. Using a required rate of return of 9%, calculate a fair value of the property today (at t=0)
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