Thursday, April 12, 2012

Financing Information


Financing and Loan Information
Loan to Value (75%):$937,500
Interest Rate:5.25%
Amortization Period (years):                           30
Payments per year:12
Holding Period (years):                            10
Payment:($5,176.91)
Balloon Payment:$482,507.93
"Going In" Cap Rate:10.96%
"Residual" Cap Rate:11.20%



General Assumptions (used in DCF)
Rental Growth Rate (3%): 1.03
Expense Growth Rate (2%): 1.02
VCL (2%): -0.02
Expense Ratio (20%): 0.2
Terminal Capitalization Rate (11.20%): 0.112


Ratios
Operating Expense Ratio = 20%
Debt Service Coverage Ratio (based on the actual net operating income previously obtained from the property): $137,000/$62,123
= 2.21 











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