Question: need help doing and understanding how to set up the example Part II Using an excel spreadsheet construct a cashflow for the investment property with

need help doing and understanding how to set up the example

need help doing and understanding how to set up the example Part

Part II Using an excel spreadsheet construct a cashflow for the investment property with the following properties: - Because do not know how expensive a property you will buy, construct the spreadsheet in a way that - the purchase amount is easily changeable, o the down payment is an easily changeable percentage of the purchase price. - The monthly rental income amount is easily changeable - Assume the rental property is depreciated at a rate of 3.636% each year for 27.5 years. The Depreciation basis of the property is its cost or the amount you paid (in cash, with a mortgage, or in some other manner) to acquire the property less the value of the land. - Make the tax rate adjustable Present an example with the following conditions: - Purchase price of $350,000 - 20\% Down payment - Use a tax rate of 20% - Assume the value of the land is 28% of the property value - Annual interest rate is 6.25% compounded monthly - maintaining the property is $400 a month and - the rental revenue is $3,300 a month. - the property value appreciation amount is 1.8% per year Assignment: - You plan to sell the property at the current market value in 10 years, what is your rate of return? - How does changing the time of sell to 2 years, 5 years, 10 years, or 30 years affect your rate of return? - What would your decision be regarding this opportunity

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