$1,250,000 Property
70% LTV, 11% Interest Rate, 30 Year Loan (payments made monthly)
PGI for each year = $200,000 (3% annual growth)
V&C Expenses = 10% of PGI
Operating Expenses = 35% EGI
90% of value is allocated to building, 10% to land
39 year recovery period
Property value appreciates at 3% per year
Property is sold at the end of year 5
Tax Rate is 36%
What is the BTIRR of this project?