4.) A 30 year old 50 unit apartment complex is for sale in Kennesaw, Ga for $3,000,000. Using the financials below what is the NOI, Cash Flow, Asking Cap Rate, Return on Equity, Debt Coverage Ratio, Loan to Value and Debt Coverage Ratio?

**If you want at least a 10% return on your investment how much would you pay for the complex? Is it a good deal for you?

Show your work. Basic Financial Information: 50 units (#25/2-bedroom/ 1 Bath; #20/1 Bedroom/ 1 bath; #S/ Studio) Average Rent - $1,100/mt for 2 bedroom; $750/mt for 1 bedroom; Studio for $500/mt. Taxes - $35,000/ yr. Insurance - $7,500/yr. General & Admin - $10,000 Amortization - $3,000/ yr. Management - 3% of Effective Gross Vacancy/ Credit Loss - 10% Landscape -$20,000/ yr. Maintenance - $40,000/ yr. Depreciation - $15,000/ yr. Pest Control - $2,500/ yr. Other Income - $3,000/yr. Payroll - $60,000/ yr. Utilities - $35,000/yr. Capital Improvements - $35,000/ yr. Advertising - $8,000/ yr. Equity - $750,000 Loan - $2,250,000 @ 7%, Interest only. 5 year balloon Debt Service - $157,500/year: $13,125/month