Question
A 25-year-old apartment complex is for sale for $5,000,000. Using the financials below what is NOI and asking Cap Rate? If you want at least
A 25-year-old apartment complex is for sale for $5,000,000. Using the financials below what is NOI and asking Cap Rate? If you want at least a 10% return on your investment how much would you pay for the complex?
Show your work.
Basic Financial Information:
100 unitsBuilt - 1994
Average Rent - $950/ unit/ mt.Taxes - $105,000/ yr.
Insurance - $25,000/ yrGeneral & Admin - $40,000
Amortization - $3,000/ yr.Management - 5% of AGI
Vacancy - 7%Landscape -$30,000/ yr.
Maintenance - $120,000/ yr. Depreciation - $60,000
Pest Control - $4,000/ yr.Other Income - $5,000/yr.
Payroll - $125,000Utilities - $18,000/ yr.
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
