1. From the following building pro forma calculate the: All Risks yield (ARY)/ the Cash on Cash Return / Capitalization Rate (Cap rate)

Purchase Price	$ 16,550,000
Loan Amount	$ 13,240,000
Initial Equity	$ 3,310,000
Potential Rental Income	$ 2,184,000
Vacancy & Credit Loss	9.00%
Effective Rental Income	$ 1,987,440
Other Income	$ -
Gross Operating Income	$ 1,987,440
Property Taxes	$ 146,500
Insurance	$ 15,000
Maintenance	$ 90,000
Management Fee	$ 262,080
Reserves for Replacement	$ 35,000
Other expenses	$ 122,000
Total Expenses	$ 670,580
Net Operating Income	$ 1,316,860
Debt Service	$ 794,400
Cash Flow Before Tax	$ 522,460