Case Study Flashcards
1
Q
You mention the property is not of a tradition build, what is it?
A
Main walls appear to be of a non-traditional single leaf, timber frame design, externally rendered – meaning it was not mortgageable
2
Q
How was the proposed rental figure of £700pcm determined?
A
Comparable evidence
3
Q
How did you calculate the payback period?
A
To calculate the payback period, follow these steps:
- Identify Initial Investment: Determine the total initial cost of the investment.
- Estimate Annual Cash Flows: Identify the expected annual cash inflows generated by the investment.
- Calculate Payback Period: Divide the initial investment by the annual cash inflow.
Formula:
PaybackPeriod = InitialInvestment / AnnualCashInflows