Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. suppose an investor is examining a rental property

Suppose an investor is examining a rental property listed for sale. The property has five...

60.1K

Verified Solution

Question

Accounting

image
Suppose an investor is examining a rental property listed for sale. The property has five apartments, cach of which can be rented for $750 per month. A 10% vacancy and collection loss rate is expected in a year. Annual operating expenses and maintenance expenses are estimated to be $3000 and $3800 respectively. The owner pays utilities of $2600 and insurance and taxes predicted to be $7100 annually. If the investor can put 50% down on the property price of $400000 and obtain a 30 -year mortgage at 7.5%, what is the property's cash flow? Suppose at the end of 30 th year, the resale price of the property is $1000000, what is intemal rate of return for the investor

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A General Power bond carries a coupon rate of 9.4%, has 9 years until maturity, and...

Finance
Q

1. Determine the spring constant for the stiffer spring. Your answer should include a plot of...

Physics
Q

Light Energy CO Water CHLOROPLAST O a decrease in respiration O an increase in respiration...

Biology
Q

"Trees grow in a nursery are preferable for transplanting to trees grown in the forest....

Biology
Q

Given that tan?=1/2 and sin?< 0, find the exact value of each of the remaining...

Basic Math
Q

The angle of depression from the top of a tower to a boulder on the...

Basic Math
Q

Write the expression as the product of two functions sin 1 2 7 sin

Algebra
Q

thank u again xoxo pter 5 Graded Outz 100 pts Help Save & ER...

Accounting
Q

Inswer the following questions regarding the Retained Earnings Statement that would be prepared from the...

Accounting
Q

The question has got three requirements and idl Consider the following selected data regarding the...

Accounting
Q

60 gnlk LIBOR iin X=%6,06 ve 341.416$ nominal tutar ile vadesi 45 gn iinde olan...

Finance
Q

You have an arrangement with your broker to request 1,000 shares of all available IPOs....

Finance