Homework Answers
Use spreadsheet for the ease in computations. Enter values and formulas in the spreadsheet as shown in the image below.
The obtained result is provided below.
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The asking price for the property is $1.000.000 rents are estimated at $200,000 during the 1st...
The asking price for the property is $1,000,000; rents are estimated at $200,000 during the first...
The asking price for the property is $1,000,000; rents are estimated at $200,000 during the first year and are expected to grow at 5% per year. Vacancies and collection losses are expected to be 10% of rents. Operating expenses will be 35% of effective gross income. Capital expenditures will be 5% of effective gross income. A 30-year fixed rate loan fro 70 percent of the purchase price can be obtained at 10% interest rate. The property is expected to appreciate...
The asking price for the property is $1,000,000; rents are estimated at $200,000 during the first...
The asking price for the property is $1,000,000; rents are estimated at $200,000 during the first year and are expected to grow at 5 percent per year. Vacancies and collection losses are expected to be 10% of rents. Operating expenses will be 35 percent of effective gross income. Capital expenditures will be 5% of effective gross income. A 30-year fixed rate loan for 70 percent of the purchase price can be obtained at 10 percent interest rate. The operty is...
You have recently graduated from University and have started your new job at Rang Consulting LLC....
You have recently graduated from University and have started your new job at Rang Consulting LLC. You have been given the following assignment. You are to present an investment analysis of a new residential income producing property an investor is considering purchasing. The asking price for the property is $1,200,000; rents are estimated at $201,000 during the first year and are expected to grow at 3.5% per year thereafter. Vacancies and collection losses are expected to be 11 percent of...
Answer parts a through e using a Financial Calculator and display all work: You are an...
Answer parts a through e using a Financial Calculator and display all work: You are an employee of University Consultants, Ltd. and have been given the following assignment. You are to present an investment analysis of a small income-producing office property for sale to a potential investor. The asking price for the property is $1,250,000; rents are estimated at $200,000 during the first year and are expected to grow at 3 percent per year thereafter. Vacancies and collection losses are...
please help with explanation An investor would like to purchase a new apartment property for $2...
please help with explanation
An investor would like to purchase a new apartment property for $2 million. However, she faces the decision of whether to use 70 percent or 80 percent financing. The 70 percent loan can be obtained at 10 percent interest for 25 years. The 80 percent loan can be obtained at 11 percent interest for 25 years. NOI is expected to be $190,000 per year and increase at 3 percent annually, the same rate at which the...
please answer only if you know the answers, and explain the process, thank you An investor...
please answer only if you know the answers, and explain the
process, thank you
An investor would like to purchase a new apartment property for $2 million. However, she faces the decision of whether to use 70 percent or 80 percent financing. The 70 percent loan can be obtained at 10 percent interest for 25 years. The 80 percent loan can be obtained at 11 percent interest for 25 years, NOI is expected to be $190,000 per year and increase...
An investor is planning to purchase a new apartment property for $1.5 million. He can obtain...
An investor is planning to purchase a new apartment property for $1.5 million. He can obtain an 80% loan for 30 years at 10%. NOI is expected to be $500,000 in the first year and grow at a rate of 2% for the next three years along with the underlying value of the building. The building and improvements represent 80% of value and are depreciated over a 27.5 useful life for an annual depreciation allowance of $43,636. The project is...
Suppose an investor is considering a non-residential rental property that has an asking price of $400,000....
Suppose an investor is considering a non-residential rental property that has an asking price of $400,000. The land is valued at $175,000. The property has four rental units that are expected to rent for $1.200 each per month for the next five years (PGI each year of $57,600). Vacancy and bad debt allowance is expected to be 5% of potential gross income Operating expenses are expected to be 16% of effective gross income. A mortgage loan is available for 80%...
Total property acquisition price $4,224,000 Property consists of eight office suites, 3 on the first floor,...
Total property acquisition price $4,224,000 Property consists of eight office suites, 3 on the first floor, 5 on the second floor Contract rents: 2 suites at $7,200 per month, 1 at $14,400 per month, and 5 at $6,240 per month. It is anticipated that rents will increase annually at the rate of 3% per year It is anticipated that vacancy and collection loss will be 10% per year Operating expenses are 40% of effective gross income Capital expenditures are 5%...
An income property has 5000 square feet of leasable space, and rents for $8.00 per square...
An income property has 5000 square feet of leasable space, and rents for $8.00 per square foot per year. Vacancy and credit loss are estimated at 4% and operating expenses at 38% of potential gross income. Lenders require a 1.2 Debt Coverage Ratio. Mortgage is available at terms of 25 years, at 15%, payable annually. The investor requires a 14% rate of return on the projects before tax equity cash flow. If other lenders required a Debt Coverage Ratio of...
The asking price for the property is $1,000,000; rents are estimated at $200,000 during the first year and are expected to grow at 5 percent per year. Vacancies and collection losses are expected to be 10% of rents. Operating expenses will be 35 percent of effective gross income. Capital expenditures will be 5% of effective gross income. A 30-year fixed rate loan for 70 percent of the purchase price can be obtained at 10 percent interest rate. The operty is...
please help with explanation
An investor would like to purchase a new apartment property for $2 million. However, she faces the decision of whether to use 70 percent or 80 percent financing. The 70 percent loan can be obtained at 10 percent interest for 25 years. The 80 percent loan can be obtained at 11 percent interest for 25 years. NOI is expected to be $190,000 per year and increase at 3 percent annually, the same rate at which the...
please answer only if you know the answers, and explain the
process, thank you
An investor would like to purchase a new apartment property for $2 million. However, she faces the decision of whether to use 70 percent or 80 percent financing. The 70 percent loan can be obtained at 10 percent interest for 25 years. The 80 percent loan can be obtained at 11 percent interest for 25 years, NOI is expected to be $190,000 per year and increase...
Suppose an investor is considering a non-residential rental property that has an asking price of $400,000. The land is valued at $175,000. The property has four rental units that are expected to rent for $1.200 each per month for the next five years (PGI each year of $57,600). Vacancy and bad debt allowance is expected to be 5% of potential gross income Operating expenses are expected to be 16% of effective gross income. A mortgage loan is available for 80%...
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