Question: you are considering purchasing a small office for 1675000. the expected first year potential gross income is 480000 with a vaccany loss equal to 15%of

you are considering purchasing a small office for 1675000. the expected first year potential gross income is 480000 with a vaccany loss equal to 15%of the pgi. operating expenses and capital expenditures are expected to be 40% and 5% of the EGI respectively. the mortage on the property is 75% LTV at a 6% interest rate with a 20 year term with monthly compounding.

A. what 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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