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Text File  |  1986-10-30  |  2KB  |  57 lines
  1. .mb0
  2. .po
  3. .po0
  4.     REAL ESTATE INVESTMENT VS ALTERNATIVE USE OF FUNDS
  5.  
  6.     PARAMETERS:
  7.     Interest rate                      11.7%
  8.     Sale commission                     6.0%
  9.     Loan points                         2.5%
  10.     Closing costs                   $500.00
  11.     Appreciation rate                   2.5%
  12.     Rent increase/yr                    2.5%
  13.     General cost inc/yr                 2.5%
  14.     Improvement percent                70.0%
  15.     Depreciation period (yrs)            27
  16.     Sale price                  $725,000.00
  17.     Vacancy rate                        3.0%
  18.     Maintenance rate                    4.0%
  19.     Down payment rate                  30.0%
  20.     Tax bracket                        28.0%
  21.     Alternate interest rate             8.0%
  22.     Property tax rate                   1.2%
  23.  
  24.  
  25. Thσ parameter≤ oµ thσ mode∞ arσ listeΣ above«  Thσ remainde≥ oµ ì
  26. thσ mode∞ i≤ organizeΣ int∩ fivσ areas:
  27.  
  28. 1.  Intermediate results
  29.     
  30. ááááThesσ figures¼ deriveΣ directl∙ froφ thσ parameters¼ arσ useΣ ì
  31. ááááiε thσ annua∞ summarie≤ whicΦ follow.
  32.  
  33. 2.  Income and expenses
  34.  
  35. ááááThi≤ areß show≤ incomσ anΣ expensσ projection≤ baseΣ oε thσ ì
  36. ááááparameter≤ anΣ intermediatσ results«  Ta° effect≤ arσ als∩ ì
  37. ááááshown.
  38.  
  39. 3.  Cash flow
  40.  
  41. ááááThi≤ sectioε show≤ casΦ flow¼ takinτ taxe≤ int∩ account«  I⌠ ì
  42. ááááend≤ witΦ ß "saving≤ account,ó whicΦ woulΣ bσ thσ amoun⌠ oµ ì
  43. áááácasΦ oε hanΣ iµ n∩ earning≤ werσ distributeΣ t∩ partners«  ì
  44.  
  45. 4.  Capital
  46.  
  47. ááááThi≤ sectioε show≤ thσ projecteΣ capita∞ valuσ anΣ taxe≤ iµ ì
  48. ááááthσ investmen⌠ werσ liquidateΣ a⌠ thσ enΣ oµ ß giveε year.
  49.  
  50. 5«  Alternativσ usσ oµ capital
  51.  
  52. ááááThi≤ sectioε compare≤ thσ rea∞ estatσ investmen⌠ t∩ ì
  53. ááááinvestmen⌠ iε ß fixeΣ ratσ security«  Thσ fina∞ figurσ i≤ thσ ì
  54. ááááfirs⌠ yea≥ iε whicΦ thσ investo≥ coulΣ liquidatσ thσ ì
  55. ááááinvestmen⌠ anΣ havσ ß bette≥ returε thaε thσ fixeΣ ratσ ì
  56. áááásecurity.
  57.