1. Use the information provided below to calculate the year 2 net operating income for the property described: Apartment 50 $800 per unit per month 3% $10 per unit per month 3% Property type: Number of units: Average rent: Expected annual rent growth: Other income: Expected annual growth in other income: Vacancy and collection losses: Operating expenses: Capital expenditures: Selling expenses: Discount rate: Going-in cap rate: Going-out cap rate: I 5% of potential gross income 45% of effective gross income 3% of effective gross income 5% of future selling price 12% 6% 6.25% $261,723 $247,447 $240,240 $254,100