1. Use the following facts about a 30-unit apartment investment to answer the next 4 questions:

Monthly rent per unit	$700
Operating expenses	$78,000
Vacancy rate	5%
Asking price	$1,690,000
Land value	$ 398,000
Overall capitalization rate	11%
Financing:	FRM 10%, 20 years; 1% Origination fee; 2 points

The lender is willing to finance up to 75% of the asking price. The investor, who manages the property, is in the 28% tax bracket.

1. . What is the before tax cash flow?

2. What is the operating expense ratio?

3. What is the debt coverage ratio?

4. What is the break-even ratio?