6.If you were able to negotiate a lower purchase price for the property... say $829,687... and if you took out an 80%LTV, 30 year, monthly payment, 8.0% interest, fully amortizing loan in order to do so... what would be yourmonthly paymentand yourannual debt service?

Let's focus back again on the Summary Slide. Regardless of what you might be willing to pay for it, an appraiser will come up with his own "market" valuation. If the appraiser assumes that the loan you took out (per #6 above)was reflective of current market conditions,what value will he assign the propertyif he does a DCF valuation at the BTCF level (using the ED method)and assumes that the market's current discount rate for leveraged cash flows is 20%.(Ignore any Loan Points)

1 2 3 4 Potential Gross Income (PCI) $180,000 $185,400 $190.962 $196,691 $202.592 - Vacancy and Collection Loss 18,000 18.540 19.096 19.669 20.259 = Effective Gross Income (CGI) 162,000 166,860 171,866 177,022 182.332 - Operating Expenses (OE) 64,800 66,744 68,746 70,809 72.933 - Capital Expenditures (CAPX) 8,100 8.343 8,593 8,851 9,117 = Net Operating Income (NOI) $89,100 $91,773 $94.527 597,362 $100.282 Debt Service (DS) 58.444 58,444 58.444 58.444 58.444 = Before Tax Cash Flow (BTCF) $30.656 $33,329 $36,082 $38,918 $41,839 - Tax Liability (TAX) 7.645 8.658 9,708 10,798 6.951 = After- Tax Cash Flow (ATCF) 23.011 24,671 26.374 28, 119 34.887 The Reversion Sales Price $1,033,000 Rev. 11/20/15 - Selling Expenses 58,300 =Net Sales Proceeds 974,700 - Remaining Mortgage Balance -631,026 =Before Tax (Equity) Reversion 343,674 - Taxes Due on Sale - 32,032 = After Tax (Equity) Reversion $311,642