Question: Please help Choose a term and calculate Cap Rate, NOI, and Cash on Cash return for each. Your terms: a. 100,000 in funds b. Credit
Please help
Choose a term and calculate Cap Rate, NOI, and Cash on Cash return for each.
Your terms:
a. 100,000 in funds
b. Credit line of 200,000 (loans terms are minimum 20% down payment, LTV is 70%) at an interest rate of 4.25%
Residential Information
Purchase Price: 200,000;
After Renovation Value: 300,000;
Investment amount needed to achieve higher value: 50,000;
Comparables in the area if renovated: 315,000;
Rent: 1500.00 per month before renovations, 2500.00 after renovations per month;
Operating Expenses to include or consider: maintenance of property is about 5% of rent, 10% of rent to utilize a management, and presume tenants pay all utilities;
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