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(1) A real estate investor is considering the purchase of an apartment building. The investor estimates...
at the end of 5 years? What if the appreciation rate is 0%? (2) You purchase...
at the end of 5 years? What if the appreciation rate is 0%? (2) You purchase an apartment building with 20 rentable units. You know that you will have to replace the air conditioners in each unit 10 years from now at a cost of $1,500/unit. How much money should you put away at the end of every year, in a bank account earning 6%, to have enough money to replace the air conditioners in 10 years
A real-estate investor has the opportunity to purchase a small apartment complex. The apartment complex costs $4...
A real-estate investor has the opportunity to purchase a small apartment complex. The apartment complex costs $4 million and is expected to generate net revenue (net after all operating and finance costs) of $60,000 per month. Of course, the revenue could vary because the occupancy rate is uncertain. Considering the uncertainty, the revenue could vary from a low of -$10,000 to a high of $100,000 per month. Assume that the investor’s objective is to maximize the value of the investment at the end of...
use excel, do it like this PV= FV= PMT= N= I/Y= IN= 1. A Real Estate...
use excel, do it like this
PV=
FV=
PMT=
N=
I/Y=
IN=
1. A Real Estate Investor is considering the purchase of an apartment building. The investor estimates the current value at $400,000. If the market price appreciates at 8 percent annually what will be the price of the unit at the end of 5 years? 2. Suppose you were selling your home. A buyer has offered to pay you $115,000 now and another $85,000 in 2 years. What is...
5. A real estate investor is considering an investment in a building that will generate profits...
5. A real estate investor is considering an investment in a building that will generate profits of $22,000 at the end of each year for the next 10 years. The investor requires a 22% return on the investment to compensate for the risk they are taking. a. How much should the investor pay today for the investment? b. How much should the investor pay today for the investment if profits at the then end of year 1 are $22,000, and...
Question 8 10 pts An investor is considering the purchase of an office building for $3.2...
Question 8 10 pts An investor is considering the purchase of an office building for $3.2 million. If she sells the property at the end of 5 years for $3,751,200, what is her expected appreciation rate? 2.56% 2.84% 1.52% 3.23% 4.57% 10 pts Question 9 MacBook Pro
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income...
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income after all operating expenses but before capital recapture from a small apartment house is estimated to be $48,000 per year: How much would an investor be willing to pay for the property if first mortgages are available for 75% the purchase price at 5.5% interest and the investor's equity capital investment requires a 15% return. The remaining life of the buildings...
Real Estate Investment Trust is considering the purchase of an office building. The general rental market...
Real Estate Investment Trust is considering the purchase of an office building. The general rental market and the leases that are currently in place have been reviewed and the REIT estimates next year’s cash flow (Time 1) at $100,000 with a rise in the yearly cash flow of $5,200 per year for the foreseeable future. The REIT plans to own the property for 10 years. Based on a review of the property sales of properties that are now 10 years...
You are planning to deposit $100 in an account earning 6% interest rate. a. How much...
You are planning to deposit $100 in an account earning 6% interest rate. a. How much money do you have at the end of three years if interest is compounded annually? b. How much money do you have at the end of three years if interest is compounded semiannually? c. How much money do you have at the end of three years if interest is compounded quarterly? d. How much money do you have at the end of three years...
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...
5. An investor would like to double their money. Their bank offers two interest rates. One...
5. An investor would like to double their money. Their bank offers two interest rates. One rate will pay 9% interest compounded annually and one rate will pay 8.7% annually compounded continuously. Which one should you select and why? 6. A friend asks for a loan of money and offers to pay $20,000 at the end of 5 years. How much should you loan him now if you expect 15% interest per year on your loan?
at the end of 5 years? What if the appreciation rate is 0%? (2) You purchase an apartment building with 20 rentable units. You know that you will have to replace the air conditioners in each unit 10 years from now at a cost of $1,500/unit. How much money should you put away at the end of every year, in a bank account earning 6%, to have enough money to replace the air conditioners in 10 years
use excel, do it like this
PV=
FV=
PMT=
N=
I/Y=
IN=
1. A Real Estate Investor is considering the purchase of an apartment building. The investor estimates the current value at $400,000. If the market price appreciates at 8 percent annually what will be the price of the unit at the end of 5 years? 2. Suppose you were selling your home. A buyer has offered to pay you $115,000 now and another $85,000 in 2 years. What is...
Question 8 10 pts An investor is considering the purchase of an office building for $3.2 million. If she sells the property at the end of 5 years for $3,751,200, what is her expected appreciation rate? 2.56% 2.84% 1.52% 3.23% 4.57% 10 pts Question 9 MacBook Pro
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income after all operating expenses but before capital recapture from a small apartment house is estimated to be $48,000 per year: How much would an investor be willing to pay for the property if first mortgages are available for 75% the purchase price at 5.5% interest and the investor's equity capital investment requires a 15% return. The remaining life of the buildings...
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...
5. An investor would like to double their money. Their bank offers two interest rates. One rate will pay 9% interest compounded annually and one rate will pay 8.7% annually compounded continuously. Which one should you select and why? 6. A friend asks for a loan of money and offers to pay $20,000 at the end of 5 years. How much should you loan him now if you expect 15% interest per year on your loan?
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