question archive An Apartment Complex with the following Particulars is bought by JK Investors for $1,200,000 by borrowing $300,000 at a rate of 5% per year for 10 years (assume annual payments)
Subject:BusinessPrice: Bought3
An Apartment Complex with the following Particulars is bought by JK Investors for $1,200,000 by borrowing $300,000 at a rate of 5% per year for 10 years (assume annual payments).
• Number of apartments: 10
• Rent per month per apartment: $900.00
• Expected vacancy and collection loss: 10 percent
• Annual maintenance: $18,000
• Property taxes: $9,000
• Property insurance: $7,000
• Management: $8,000
• Capital expenditures: $5,000
• Other operating expenses: $3,000
Calculate: