Location: Rexburg, ID
For Sale Website:
From completing our forecast, analyzing the break-even, and computing WACC, we have been able to determine that this student housing complex would be an amazing investment. We can get far above the 5% WACC without very much debt, and we know that the less debt that we have in a business the happier investors are. In our forecast, we assumed that we made a 30% down payment and then for the rest of the building we took out a mortgage. If less debt is desired by investors, a larger down payment can be made. After analyzing the numbers for owning this apartment complex and renting it out to students in Rexburg, we have been able to determine that this is an excellent investment with little debt but great returns.