The following information about an apartment building applies to the next 12 questions: Total Value : $1,000,000 Number of units: 20 Rent/unit/year:...
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The following information about an apartment building applies to the next 12 questions:Total Value :$1,000,000Number of units:20Rent/unit/year:$8,000Expected Selling Price at the end of 5 years: $1,500,000Selling Expenses:10% of selling priceBuilding Value / Total Value:55%Holding period:5 yearsVacancy rate:5%Maintenance:$7,000/yearProperty taxes:$4,000/yearManagement fees:$6,000/yearProperty Insurance:$1,500/yearUtilities:$1,500/yearDebt Service:$100,000/year1st year Mortgage Interest:$90,000Loan Balance at the end of year 5:$800,000Your marginal income tax rate:28%Depreciation recapture tax rate:25%Capital Gain Tax Rate:20%
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