The purchase price of a property, land and improvement, was $1,625,000. you put 20% down payment...

The purchase price of a property, land and improvement, was $1,625,000. you put 20% down payment and the rest was financed. the mortgage is a 30 year loan at 6.5% principal-interest payment. taxes and insurance at the time of purchase are $18,000 each year. the vacancy rate is 8%, while the repair expenses averaged is $8,500 every year. you spend annually about $2,000 for miscellaneous and advertising costs. you manage the property yourself. determine the monthly cash flow from 30 unit apartment with monthly rent of $650 per unit. was it a good investment?

Expert Solution

jeff jeffy answered 2 years ago

You put 20% down on a home with a purchase price of $250,000. The down payment...

You put 20% down on a home with a purchase price of $250,000. The down payment is thus $50,000, leaving a balance owed of $200,000. A bank will loan you this remaining balance at 3.91% APR. You will make monthly end-of-the-period payments with a 30-year payment schedule. What is the monthly annuity payment under this schedule?

You purchase a $1,250,000 home by providing a down payment equal to 20% of the purchase price.

You purchase a $1,250,000 home by providing a down payment equal to 20% of the purchase price. You take out a loan for the remaining balance that requires equal end-of -month payments over the next 30 years with an EAR of 3.8%. How interest will be paid with the first two payments?

You financed the purchase of a $300,000 apartment with a down payment in cash of 20%...

You financed the purchase of a $300,000 apartment with a down payment in cash of 20% of the purchase price. The remaining 80% is financed with a mortgage with a 1% monthly interest rate over the next 20 years. The mortgage is repaid with equal monthly installments. Compute the monthly installments on the mortgage. (5 points) What is the outstanding principal balance of the mortgage after 5 years (i.e., after 60 installments)? (5 points) Ten years later (after 120 installments),...

You are planning to buy a house in New Jersey. You put a 20% down payment,...

You are planning to buy a house in New Jersey. You put a 20% down payment, and 15-year mortgage rates are at 4.2% -Price of the house is $400,000. a. Calculate the monthly payments. b- Calculate the 1st month interest payment. c-Calculate the 1st month principal payments

You are planning to buy a house in New Jersey. You put a 20% down payment,...

You are planning to buy a house in New Jersey. You put a 20% down payment, and 15-year mortgage rates are at 4.2% -Price of the house is $400,000. A. Calculate the 1st month interest payments B.Calculate the 1st month principal payments C. Calculate the monthly payments. Place answer in the box below and use 2 decimals and no $ sign

If you purchase a piece of land for $25,000, making a $1,000 down payment, what would...

If you purchase a piece of land for $25,000, making a $1,000 down payment, what would the appropriate entry be for this transaction? If you wish to make a correcting journal entry to the prior year, what account would you post to? What are the three categories represented on the balance sheet? What are the two methods of reporting accounting transactions? Please explain what NOI/Net Operating Income represents on the income statement. What is a subsidiary journal? When reconciling the...

You are planning to purchase a house that costs $480,000. You plan to put 20% down...

You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage. Use function “PMT” to calculate your mortgage payment. Use function “PV” to calculate the loan amount given a payment of $1700 per month. What is the most that you can borrow? Use function “RATE” to calculate the interest rate given a payment of $1700...

Suppose you have just purchased your first home for $300,000. At the time of purchase you could afford to commit 20% of the purchase price to a down-payment

Suppose you have just purchased your first home for $300,000. At the time of purchase you could afford to commit 20% of the purchase price to a down-payment. Suppose over time you paid down the principal of the loan to $220,000 and at that point in time you can no longer make any mortgage payments (i.e., you default on the loan). If the lender were to foreclose on your property and sell it for $190,000, determine the amount of the...

You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder.

You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.25% on a 30-year mortgage. Use function “PV” to calculate the loan amount given a payment of $1550 per month. What is the most that you can borrow? (Be sure that PV is the amount you borrow, not the cost of the house.) Use function “PMT” to calculate your...

I. Suppose an apartment you want to purchase costs $500,000. You can put down 20% in...

I. Suppose an apartment you want to purchase costs $500,000. You can put down 20% in cash and take out a 30-year fixed rate mortgage loan for the remaining. You believe that you can get an APR of 6.5% on such a mortgage loan at a local bank. a. Suppose the loan calls for equal monthly payments. Please set up a monthly amortization schedule table for the loan (Input setting: 20%, creating and copying formulas and Excel finance functions: 40%)....

Question

The purchase price of a property, land and improvement, was $1,625,000. you put 20% down payment...

Solutions

Expert Solution

Related Solutions

You put 20% down on a home with a purchase price of $250,000. The down payment...

You purchase a $1,250,000 home by providing a down payment equal to 20% of the purchase price.

You financed the purchase of a $300,000 apartment with a down payment in cash of 20%...

You are planning to buy a house in New Jersey. You put a 20% down payment,...

You are planning to buy a house in New Jersey. You put a 20% down payment,...

If you purchase a piece of land for $25,000, making a $1,000 down payment, what would...

You are planning to purchase a house that costs $480,000. You plan to put 20% down...

Suppose you have just purchased your first home for $300,000. At the time of purchase you could afford to commit 20% of the purchase price to a down-payment

You are planning to purchase a condo that costs $480,000. You plan to put 20% down and borrow the remainder.

I. Suppose an apartment you want to purchase costs $500,000. You can put down 20% in...