Example Data

• 1. Project Cost: $7,000,000

• 2. M = .80

• 3. Loan Terms: .064, 20 yrs, annual pmts.

  • Hence, Rm = .09

• 4. RE Taxes = 10%Operating Expenses = 30%Vacancy Allowance = 5%

• Market Rents = $4.00/S.F.

• Reserve Account = $44,000

• Re = 14%

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