You purchase a $520,000 property in 2010 with a loan-to-value of 90%. The loan is Interest Only for the first 5 years. The Market Value decreases over the first 5 years so that the Loan-to-Value equals 102% at the end of 2014 (the end of Year 5). What is the property’s Market Value at the end of 2014?

Real Estate Financial Modeling / Questions / You purchase a $520,000 property in 2010 with a loan-to-value of 90%. The loan is Interest Only for the first 5 years. The Market Value decreases over the first 5 years so that the Loan-to-Value equals 102% at the end of 2014 (the end of Year 5). What is the property’s Market Value at the end of 2014?

Jun 28