You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI= $20,000, vacancy rates are 8%, and operating expenses are $8,100.

1. Calculate the mortgage constant.

2. Calculate the annual debt service.

3. Calculate the EGI, NOI, and BTCF

4. Calculate the overall capitalization rate, using the band-of-investment approach.

Answer rating: 100% (QA)

1 mortage constant is nothing but the ratio of the annual amount of debt servi... View the full answer