Homework Project Without Debt
Given: Garden Apartment ABC in Kansas City
		Number of Garden Apartments	225
		Average monthly rent	$ 875.00
		Loss to lease (% of GPRI)	2.00%
		Vacancy & collection loss (% of GPRI)	8.00%
		Miscellaneous income (% of NRR)	4.00%
		Expense reimbursement (% of NRR)	4.00%
		Operating and leasing expenses (% of NRR)	43.00%
		CAPX/Inprovement Allowance (% of NRR)	9.00%
		Rent growth per year	2.00%
		Purchase Price:		$13,820,630
		Cap Rate:			10.00%
		Calculate the annual cost for the first year:
											Discount Rate	9.00%
		IREM Format		Yr 1	Yr 2	Yr 3	Yr 4	Yr 5
		Gross Potential Income (GPI)							0	0
		Less: loss to lease								1	0
		Less: vacancy, collections & concessions							2	0
		Net Rent Revenue (NRR)	0	0	0	0	0		3	0
		Add: miscellaneous income							4	0
		Add: expense reimbursements							5	0	+	0	0
		Effective gross income (EGI)	0	0	0	0	0
		Less: operating expenses
		Net Operating Income (NOI)	0	0	0	0	0		NPV =
		Less: annual debt services	0	0	0	0	0		IRR =
		Less Capex/Improve Allowance
		Before Tax Cash Flow (BTCF)	0	0	0	0	0
				Sell price Cap Rate (NOI/CR)	9.50%			Sales Price	0
				Sales commission	5.00%				0
				Minus bank debt					0
				Net to seller					0
				Note: assume the NOI in year 6 is the same as year 5.