read my files please

Hello Everyone:

Here's my suggestion on how we tackle this project.

**I've asked Simone if she could work on #2 since we need that first before moving forward.

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**Once we have the properties selected by Simone in #2 we can move to #4, which is the hardest part.

The other 5 of us should select one of the 5 sections I've divided below. (1&2), (3&4), (5&6), (7&8), and (9)

(I volunteer for 1 and 2 below but if someone else would prefer working on that section, I don't mind choosing another.)

1.- Inflation expectation: A fair estimation (must be justified in the text).

2.- Interest rate: Current market rate for individuals with high credit score.

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3.- Rental growth rate: A reasonable estimation for the area (must be justified in the text).

4.- Property appreciation: First estimate what is a reasonable rate of appreciation for your area over the long run and then arrive with reasonable assumption for a reasonable rate of appreciation over the medium term (6 years) (must be justified in the text).

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5.- Insurance: A reasonable assumption for the area (must be justified in the text).

6.- Maintenance: A reasonable assumption (must be justified in the text). Here you should also consider dues charged, if any, by the building or neighborhood association.

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7.- Property tax: A reasonable assumption for the area (must be justified in the text).

8.- Mortgage initiation fee: A reasonable assumption (must be justified in the text).

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9.- Investment opportunity: A reasonable assumption (must be justified in the text).

When we get all these parts done, it's easy to plug into the spreadsheet and complete the analysis.

These should be answered by Monday in order to get the professor's input on Tuesday 01/26/2016.

After the professor's input we adjust our answers and move to part 5.

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Part 5 we can all come together and meet sometime next week before the Tuesday 02/02/2016 class. I know how to complete most of this part.

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Parts #1 and #6 should be completed last after the analysis is complete.

Please reply with which of the sections you would prefer to work on above.