Question: please answer, thank you!! You are considering purchasing a small office building for $3,475,000. the expected first year potential gross income is $750,000 with a
please answer, thank you!!
You are considering purchasing a small office building for $3,475,000. the expected first year potential gross income is $750,000 with a vacancy loss of equal to 10% of the PGI. operating expenses and capital expenditures are expected to be at 40% and 5% of the EGI repsectively. the mortgage of the property is 70% LTV, at a 6% interests rate with a 25 year term with monthly compounding.
A) whT is the required equity investment (what is the required down payment)
B) estimate NOI, the debt service paid in a year and the before tax cash flow
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