Question

1. You plan to break ground for a new building that has 30 2-bedroom apartments. The new building will cost $12,000000 including renovations that would last a year (i.e., you would not have a tenant for a year. The interest rate for commercial loan is 5% per annum. You would pay the money upfront making $0 down payment. You are taking a 30-year loan with no balloon payment. The loan is estimated to being in January 2020 when you expect to get occupations and supervise renovation (included in the price).

1. Build out the amortization table complete with each period, beginning balance, payment, interest paid, principle paid, and the ending balance.
2. You believe that on an average you would have 1 apartment unoccupied all the time and you would be able to get a rent of $1500 per month. You collect the rent for the whole year at the time of leasing (on December 31^st for the following year). You contribute whatever you save (or loose) as additional payment. Prepare another mortgage table and answer the following:

1. By which year would be able to payoff the mortgage?
2. What would be the payment that year?

Answer 1

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NOTE : ACCORDING TO MY KNOWLEDGE. I HAVE ANSWERED ONLY A BIT . THANKS