Real Estate Principles 3rd Edition by David Ling,Wayne Archer

Exercise 22

An investment opportunity having a market price of $1,000,000 is available. You could obtain a $750,000, 25-year mortgage loan requiring equal monthly payments with interest at 7.0 percent. The following operating results are expected during the first year:
For the first year only, determine the:
a. Gross income multiplier.
b. Operating expense ratio.
c. Monthly and annual mortgage payment.
d. Debt coverage ratio.
e. Overall capitalization rate.
f. Equity dividend rate.