A $1,000 investment is made in a property. The property is held for 4 years, generating annual non-escalating cash flows of $65 in each of Years 1 through 4. The asset is sold at the end of Year 4, generating net sale proceeds of $2,000. A 9% Annual cumulative, non-compounding Preferred Return structure is assumed, based only on the Investor’s investment, and paid only to the Investor. What is the Residual Cash Flow available for Payment Types B and C at the end of Year 4?

Real Estate Financial Modeling / Questions / A $1,000 investment is made in a property. The property is held for 4 years, generating annual non-escalating cash flows of $65 in each of Years 1 through 4. The asset is sold at the end of Year 4, generating net sale proceeds of $2,000. A 9% Annual cumulative, non-compounding Preferred Return structure is assumed, based only on the Investor’s investment, and paid only to the Investor. What is the Residual Cash Flow available for Payment Types B and C at the end of Year 4?

Jul 03