Problem:
You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI= $20,000, vacancy rates are 8%, and operating expenses are $8,100.
Required:
Question 1: Calculate the mortgage constant.
Question 2: Calculate the annual debt service.
Question 3: Calculate the EGI, NOI, and BTCF
Question 4: Calculate the overall capitalization rate, using band-of-investment approach.
Note: Please provide equation and explain comprehensively and give step by step solution.