Case Study Essay Example | Topics and Well Written Essays - 1250 words - 12

Case Study - Essay employmentEdward horse parsley wants to cloak in real estate, thus building equity based future. He believes that increase his return would be best done by managing his own investment. He thinks that paying someone for ingest is a not a smart idea since its simply a waste of money. horse parsley wants to invest in the popular Beacon Hill area and thus he initiated a thoroughgoing search about the area. He found out that the value of the area is increasing rapidly payable to the natural advantages surrounding it such as Charles River and public parks. The properties were listed in the market from $299,000-2.4 million dollars. The rent for a one bedroom flatcar in that area ranges between $1100-1600 per month and the two bedroom apartment ranges from $1600-$2100.Alexander has $80,000 cash and the required investments about 21.5%. Thus, Alexander needs $70,000 in cash. Alexander decided to invest in a complex priced at $350,000 that needs renovation of $165,000, he decided to invest his $80,000 and cash in ones chips a $19,000 from an investor and take a mortgage loan of $450,000. Taking into consideration of miscellaneous costs and fees that come $549,000, consequently, a mortgage higher than $450,000 would result in a higher interest of $2000 during renovations. This paper leave behind analyze Alexanders options with regard to this property. And provide forecast of the most important financial ratios.The cases regarding to Alexander Edward, who is a graduate from Harvard College, and recently working in a biotech firms since four years. Due to the good intimacy of the location, and his perspective to give a hand in real estate business included their urge on to have a home a good location, he started to explore the location with all accomplishable sources. The business in the sector is on its peak and growth is very good since last cardinal years. The home liked by Alexander is almost priced at $500,000