A rental property is listed for $2,000,000. It contains 4 units each renting for $2,750 per month. Assuming tax rate is 1.25% of the purchase price per year and insurance is 1% of purchase price per year. If I put 5% down assuming 5% interest rate, what price should I buy this property for in order to break even on the monthly payments? Please show excel calculations.

A rental property is listed for $2,000,000. It contains 4 units each renting for $2,750 per month. Assuming tax rate is 1.25% of the purchase price per year and insurance is 1% of purchase price per year. If I put 5% down assuming 5% interest rate, what price should I buy this property for in order to break even on the monthly payments? Please show excel calculations.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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