vv-2 - Assumptions for Purchase Purchase Price Mortgage...

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Assumptions for Purchase Operating Costs of Leasing Purchase Price $175,000 Monthly Rent $1,200 Mortgage Loan-to-Value Ratio 95.00% Renters Insurance $30 Mortgage Amortization Period (Yrs) 30 Total Monthly Operating Costs $1,230 Annual Mortgage Interest Rate 6.00% Annual Prop. Appreciation Rate 3.00% Ann. Escalation Rate of Holding Exp. 3.00% Operating Costs of Buying $997 Assumptions for Leasing Property Taxes (monthly) $84 Monthly Rent $1,200 Homeowners Ins. (monthly) $42 Est. Annual Rent Escalation 3.00% Private Mortgage Insurance (PMI) $138 Repairs and Maintenance (1% of Value / Yr.) $146 Other Assumptions Total Monthly Operating Costs $1,407 Owner/Renter Tax Bracket 25.00% Opportunity Cost of Capital 10.00% Disposition Costs of Buying Selling Commissions (7%) $15,066 Closing Costs (1% of Sales Price) $2,152 Upfront Leasing Costs Capital Gains Taxes $0 Security Deposit $600 Total Disposition Costs $17,218 Last Months Rent $1,200 Total Upfront Costs $1,800
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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-2 - Assumptions for Purchase Purchase Price Mortgage...

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