Find overall capitalization rate using band-of-investment

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You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI= $20,000, vacancy rates are 8%, and operating expenses are $81,000.

1. Calculate the mortgage constant.

2. Calculate the annual debt service.

3. Calculate the EGI, NOI, and BTCF

4. Calculate the overall capitalization rate, using band-of-investment approach.

Reference no: EM13334951

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