Decided to buy small apartment building

Assignment Help Financial Management

Reference no: EM131572727

You have decided to buy a small apartment building for $125,000 near a local college. You used $12,500 as a down payment and obtained a mortgage from a local bank for the remaining $112,500. The annual mortgage payment to the bank is $13,500. You expect that the annual maintenance on the building and grounds will be $15,500. There are four apartments (two bedrooms each) in the building that can be rented. Assuming 100% occupancy all year, how much rent per month must you charge in order to break even, such that your revenue equals your expenses each month. (Enter your answer as a number without the dollar sign.)

Reference no: EM131572727

Questions Cloud

Compute the taxable equivalent yield and yield to maturity : Compute the yield to maturity. Compute the taxable equivalent yield.

Rate-sensitive assets and rate-sensitive liabilities : A thrift has rate-sensitive assets of $25 million and rate-sensitive liabilities of $14 million?

Financial advisor to the sponsors in a concession : Which company can act as financial advisor to the sponsors in a concession:

Which is the name of method to finance public infrastructure : Which is the name of the method to finance public infrastructure where the payment of the whole amount of the contract is paid at the end of the execution:

Decided to buy small apartment building : You have decided to buy a small apartment building for $125,000 near a local college. how much rent per month must you charge in order to break even,

Discuss the risks and potential return : Share a specific example of each of the 3 tiers of investing. Discuss the risks and potential return.

Swap fixed-rate loans for floating-rate loans : Why might an individual or organization be willing to swap fixed-rate loans for floating-rate loans?

Circumstances in project finance transaction : Select a risk that a bank is not prepare to take at any circumstances in a project finance transaction:

Determine the shape of the distribution : determine i the geometric mean rate of return for the first three years and determine the shape of the distribution.

User Account

All Pages