Question: Question 3 (15 points) You have recently purchased a 15-unit apartment building with NOI of $82,500. You purchased the property based on a 6.25% cap

Question 3 (15 points) You have recently purchased a 15-unit apartment

Question 3 (15 points) You have recently purchased a 15-unit apartment building with NOI of $82,500. You purchased the property based on a 6.25% cap rate. The appraisal your lender obtained indicated a value of $1,250,000. Your lender has quoted you the following terms: 4.50% interest rate 25-year amortization (monthly) 80% LTV ratio Determine the following: 3a. The purchase price you are paying based on the income and cap rate given. 3b. The principal amount for the loan (max loan amount). 3c. The equity contribution/down payment for the purchase. 3d. The annual debt service for the loan 3e. The debt coverage ratio based on the current NOI. 3f. The debt yield based on the current NOI. Your

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