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.