What is the cash available for distribution to the equity


Given the following:

Net Operating Income $900,000 

Cost of Sale (Broker + Atty) 6%

Current Loan Balance $2,500,000 

Loan to Value Ratio 75% 

Capitalization Rate 9.5% 

What is the cash available for distribution to the equity partners under each of the following scenarios?

A. The property is sold.

B. The property is refinanced.

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Finance Basics: What is the cash available for distribution to the equity
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