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Unformatted text preview: Assuming a 7.5% interest rate with amortization over 30 years and a monthly payment of $3,496.07, calculate the balloon payment if you were to sell the property and pay off the loan today. • $302,189 • $451,391 • $377,133 • Not enough information 4) Using the information from question 3 – what would be the After Tax Cash Flow from reversion given the following: • Loan was 75% LTV • Projected Year 9 NOI of $63,000 • Terminal Capitalization Rate of 7% • 5% Cost of Sales • 15% Capital Gains on Appreciation Rate • Depreciation Recapture is $30,000 a) $796,750 b) $345,359 c) $855,000 d) Not enough information 5) Consider the following: • Purchase Price: $600,000 • NOI (Year 1): $60,000 • Income Tax (Year 1): $15,000 • LTV: 65% • Monthly Rate: 7% • Amortization period: 25 years a) What is your DSCR? b) What is your Year 1 ATCF? Answers: 1 – C 2 – C 3 – B 4 – B 5a 1.81 5b  $11.923...
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This note was uploaded on 04/09/2012 for the course REAL EST 306 taught by Professor Mccabe during the Spring '12 term at University of Wisconsin.
 Spring '12
 McCabe

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