Total property acquisition price $4,224,000
Property consists of eight office suites, 3 on the first floor, 5 on the second floor
Contract rents: 2 suites at $7,200 per month, 1 at $14,400 per month, and 5 at $6,240 per month.
It is anticipated that rents will increase annually at the rate of 3% per year
It is anticipated that vacancy and collection loss will be 10% per year
Operating expenses are 40% of effective gross income
Capital expenditures are 5% of effective gross income
Anticipated holding period is 5 years
Expected selling price is based on a cap rate of 8%
It is anticipated that selling expenses will be 4% of the sales price
The first mortgage is $3,168,000
The mortgage interest rate is 5%
The loan term is 30 years
Total upfront financing costs are 3%