Real finance estate

Real finance estate

Q1) what is the gross income of the property?

1500 rent per month

total units 40

Gross Income = Rent*Units*number of months/year

For one year Gross Income

720000

For six years Gross Income

43200000

Q2) what is the effective income of the property

Effective Gross Income

Gross Income-Vacancy

For the Year

360000

For six Years

2160000

Q3) What is the net operating income of the property?

Net Operating Income

 

 

 

Gross Operating Income

360000

Expenses

180000

Net Operating Income

 

180000

Q4) What is your estimate of value?

Sales Price

4320000

 

Bank LTV

75%

Bank Loan

3240000

Interest Rate

1.25%

Borrower Equity

1080000

Net Operating Income

180000

Mortgage Payment

40500

Cash flow

139500

Equity Return

0.129167

12.90%

Q5) Based on your Bank's LTV guidelines, how much can you lend Jim?

Based on bank LTV guidelines we could provide ...