What are the benefits of delayed mortgage payment

Assignment Help Financial Management

Reference no: EM133791654

Problem

1) What would happen without the waiver of the transaction fees? Would the seller have been able to afford the sale given her financial situation? What would happen if it took six months to rent instead of two months? What are the benefits of delayed mortgage payment? How can a buyer set themselves up for retirement using investment properties?

2) Develop a real estate financial model to answer the above questions. In addition, assuming a 15-year hold, what is the expected yield to Randall? What about a 20-year hold?

3) What if this were rented as student housing, i.e. as rooms rather than a single unit? Could the yield be increased? Does this present an opportunity for Randall?

4) It is currently December 2020. Randall continues to own the property and it is leased for $2,395/mo. What is Randall's current financial position in the asset? How well has the property done since initial purchase, i.e. equity sizing, yield? Should Randall sell the asset, refinance the asset (and hold), or do nothing? Remember this is NOT an owner occupied residents and therefore will not receive Freddie/Fannie preferential rates. Calculate the risks associated with the strategy recommended for Randall

Reference no: EM133791654

Questions Cloud

What ways is brazil the giant of south america : In what ways is Brazil the "Giant of South America"? What forces bind Brazil together? What forces divide Brazil?

What does it tell us about military culture and gender roles : What does this document tell us about Aztec political identity during the conquest? What does it tell us about military culture and gender roles?

What are the issues that make defining child neglect neglect : What are some of the issues that make defining child neglect difficult? Use examples from the textbook and cite the book.

Development of administration under popular sovereignty : Explain problem that Wilson identifies with the development of administration under popular sovereignty.

What are the benefits of delayed mortgage payment : What are the benefits of delayed mortgage payment? How can a buyer set themselves up for retirement using investment properties?

Explain the benefits and potential costs associated : Explain the benefits and potential costs associated with your plans. You can decide on the size of the company that you are operating. You are encouraged

Discuss the earliest evidence of money : Begin by defining what money is and why it was developed. Discuss the earliest evidence of money and its origins.

How societies transitioned from bartering to use of coins : Describe the initial forms of currency, such as bartering systems, and how societies transitioned from bartering to the use of coins.

Analyze the authors points in support of the premise : Critically evaluate the merit of the article using strong arguments and evidence. How does the article support this unit's concepts?

User Account

All Pages