#4) A 30-year-old 200 unit apartment complex is for sale in Canton, GA for $12,000,000. Using the financials below what is the NOI, Cash Flow, Asking Cap Rate, Return on Equity, Debt Coverage Ratio, Loan to Value?

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

Show your work.

Basic Financial Information:

200 units (#100/2-bedroom/ 1 Bath; #70/1 Bedroom/ 1 bath; #30/ Studio)

Average Rent - $1,100/mt for 2 bedroom; $750/ mt for 1 bedroom; Studio for

$500/mt.

Taxes - $150,000/ yr.

Insurance - $30,000/ yr. General & Admin - $40,000

Amortization $9,000/ yr. Management 3% of Effective Gross

Vacancy/ Credit Loss 10% Landscape $85,000/ yr.

Maintenance $120,000/ yr. Depreciation - $60,000/ yr.

Pest Control - $10,000/ yr. Other Income - $5,000/yr.

Payroll - $250,000/ yr. Utilities - $135,000/ yr.

Capital Improvements $120,000/ yr. Advertising - $30,000/ yr.

Equity $2,400,000

Loan - $9,600,000 @ 8%, Interest only, 7 year balloon

Debt Service - $768,000/ year; $64,000/ month