vv-1 - Assumptions for Purchase Purchase Price Mortgage...

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Assumptions for Purchase Operating Costs of Leasing Purchase Price $175,000 Monthly Rent Mortgage Loan-to-Value Ratio 95.00% Renters Insurance Mortgage Amortization Period (Yrs) 30 Total Monthly Operating Costs Annual Mortgage Interest Rate 6.00% Annual Prop. Appreciation Rate 3.00% Ann. Escalation Rate of Holding Exp. 3.00% Operating Costs of Buying Assumptions for Leasing Property Taxes (monthly) Monthly Rent $1,200 Homeowners Ins. (monthly) Est. Annual Rent Escalation 3.00% Private Mortgage Insurance (PMI) Repairs and Maintenance (1% of Value / Yr.) Other Assumptions Total Monthly Operating Costs Owner/Renter Tax Bracket 25.00% Opportunity Cost of Capital 10.00% Disposition Costs of Buying Selling Commissions (7%) Closing Costs (1% of Sales Price) Upfront Leasing Costs Capital Gains Taxes Security Deposit $600 Total Disposition Costs Last Months Rent $1,200 Total Upfront Costs $1,800 Disposition Costs of Renting Cleaning Fee Upfront Buying Costs Total Disposition Costs
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This note was uploaded on 04/07/2011 for the course BUS M 301 taught by Professor Jimbrau during the Winter '11 term at BYU.

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vv-1 - Assumptions for Purchase Purchase Price Mortgage...

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