Property is generating 1.7 million in EGR and NOI of 1 million. It is being bought based on a cap rate derived. The purchaser will obtain a mortgage of 65% of value. The interest rate will be 4.25% based on a 30 year amortization schedule.
What is the value?
What is the loan amount?
What is the Debt Yield?
What is the DSCR?
What is the break-even calculation
Band of investments: Given information above and the fact that equity returns are currently 8%, what cap rate would be derived from this information.