Purchase Price: $450,000
Down Payment (45%): $200,000
Loan Amount: $250,000
Annual Mortgage Payment :$7000
What is the net operating income?
Ans-Net Income After Financing: [$38750-$7000] = $31750
What is the sales price if the buyer on december 31, 2019 purchases the building at a 6.25% cap rate?
Ans-$31750/6.25%=$508000
What is the total return?
Ans-$508000-450000=$58000.
On january 1, 2019, Janet buy a modified building for $450,000. She put $200,000 down and...
On january 1, 2019, Janet buy a modified building for $450,000. She put $200,000 down and finance $250,000. The annual principal and interest paunch are $19,200. During escrow she find a tenant willing to pay $38,750 included annual rent on a NNN basis on december 31,2015 she sell the building at a cap rate of 6.25%. Assume principal pay down is $7,000 included the first year. What is the net operating income? What is the sales price if the buyer...