Choose a term and calculate Cap Rate, NOI, and Cash on Cash return for each. Your terms: a. 100,000 in funds b. Credit line of 200,000 (loans terms are minimum 20% down payment, LTV is 70%) at an interest rate of 4.25%   Residential Information   Purchase Price: 200,000; After Renovation Value: 300,000; Investment amount needed to achieve higher value: 50,000; Comparables in the area if renovated: 315,000; Rent: 1500.00 per month before renovations, 2500.00 after renovations per month; Operating Expenses to include or consider: maintenance of property is about 5% of rent, 10% of rent to utilize a management, and presume tenants pay all utilities;

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
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Choose a term and calculate Cap Rate, NOI, and Cash on Cash return for each.

Your terms:

a. 100,000 in funds

b. Credit line of 200,000 (loans terms are minimum 20% down payment, LTV is 70%) at an interest rate of 4.25%

 

Residential Information

 

Purchase Price: 200,000;

After Renovation Value: 300,000;

Investment amount needed to achieve higher value: 50,000;

Comparables in the area if renovated: 315,000;

Rent: 1500.00 per month before renovations, 2500.00 after renovations per month;

Operating Expenses to include or consider: maintenance of property is about 5% of rent, 10% of rent to utilize a management, and presume tenants pay all utilities;

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