A quintuplex (2 commercial and 3 residential units) is available for sale at a asking price of $2.5 million. The properties main characteristics are (Centris 2021):

Building characteristic (Centris 2021)

Built in 1957

3201 Sqft

Residential units with terrace

2 x 4.5

1 x 6.5

Commercial units

800 to 3675 sqft

6 feet basement

A financial analysis will be done based on the three following scenarios:

Pessimistic scenario

Purchase price is at a 3.8% markup ($2,595,000.00)

5% down payment was given

LTV= 95%

Mortgage default insurance is needed at 4.00% premium

Most likely scenario

Purchase price is at a 2% markup ($2,550,000.00)

15% down payment was given

LTV= 85%

Mortgage default insurance is needed at a 2.80% premium

Optimistic scenario

Purchase price is equal to asking price ($2,500,000.00)

20% down payment was given

LTV= 80%

Mortgage default insurance is optional.

Calculate the NOI and the cashflow( please include the step by step process).