Real estate question dealing with cap rate

timer Asked: Oct 14th, 2015

Question description

. Loans for multifamily properties with more that 50 units are currently available for 20 years at 7%.  Borrowers can obtain and 80% loan.  Investors in multifamily properties in this market demand 13% due to the current volatility of the market.  What is the overall capitalization rate?  

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