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

Exercise 18

Use the following information to answer questions 3-5:
Five years ago you purchased a small apartment com­plex for $1 million. You borrowed $700,000 at 12 percent for 25 years with annual payments. The original depreciable basis was $750,000 and you have used 27 1 / 2 -year straight-line depreciation over the five-year holding period. Assume no capital expenditures have been made since acquisition. If you sell the property today for $1,270,000 in a fully taxable sale:
What will be the after-tax equity reversion (cash flow) from the sale