Real Estate Investment Case Study

Real Estate Investment Case Study

Assume that you are able to obtain a loan from the bank for up to $10,000,000 at 7% interest 

annually.  You are to create a portfolio of real estate investments from real estate properties 

currently listed for sale.  Select a minimum of 3 properties that you can purchase with this loan 

from any source, for example, Realtor.com. These investments can be from anywhere in the 

United States and from any price range (use current market values).  Calculate the expected total 

cost of purchase for these investments.  Calculate the expected annual payments for mortgage 

interest, property taxes, and insurance.  Calculate expected gross rents and net operating income. 

Compare the expected net operating income to your expected mortgage interest, property taxes, 

and insurance payments.  Make conclusions as to whether these investments are profitable based 

on your analysis.  Use concepts found in the course to defend your position.  You can make any 

realistic assumptions necessary.