1. After making any adjustments, if any, you deem necessary, what is the implied going-in cap rate at an asking price of $800,000?

Income Statement (Cash) 200 E. Elm Street December 2015 Page 1 12/31/2015 9:30 AM Prepared for Prepared by: Month to Date %6 Year to Date INCOME Rent Return check fee TOTAL INCOME 6,175.00 22.50 6,197.50 99.64 0.36 100.00 72,981.33 75.00 73,056.33 99.90 0.10 100.00 EXPENSE Registration tee - City of Ral Water Painting/Inside Electricity 521.02 8.41 89.35 432.98 1.44 6.99 332.50 5.37 Insurance Heating/AC repair Legal Fees Accounting Fees Court Costs Taxes Other Plumbing General Repair General Clearing Lawn Service Management Fee Mortgage Payment TOTAL EXPENSE 25.00 6,887.50 210.00 644.17 5,666.55 3,913.00 727.50 200.00 995.00 125.00 6,755.73 200.00 750.00 7,286.44 180.00 1,265.00 4,280.28 21,544.00 60,856.17 0.03 9.43 0.29 0.86 7.76 5.36 1.00 0.27 1.36 0.17 9.25 0.27 1.03 180.00 415.00 372.00 1,712.00 4,052.85 2.90 6.70 6.00 27.62 65.43 10.11 0.25 1.73 6.00 28.12 83.30 NET INCOME OPERATING NET INCOME 2,142.65 2, 142.65 34.57 34.57 12,200.16 12,200.16 16.70 16.70 Income Statement (Cash) 200 E. Elm Street December 2015 Page 1 12/31/2015 9:30 AM Prepared for Prepared by: Month to Date %6 Year to Date INCOME Rent Return check fee TOTAL INCOME 6,175.00 22.50 6,197.50 99.64 0.36 100.00 72,981.33 75.00 73,056.33 99.90 0.10 100.00 EXPENSE Registration tee - City of Ral Water Painting/Inside Electricity 521.02 8.41 89.35 432.98 1.44 6.99 332.50 5.37 Insurance Heating/AC repair Legal Fees Accounting Fees Court Costs Taxes Other Plumbing General Repair General Clearing Lawn Service Management Fee Mortgage Payment TOTAL EXPENSE 25.00 6,887.50 210.00 644.17 5,666.55 3,913.00 727.50 200.00 995.00 125.00 6,755.73 200.00 750.00 7,286.44 180.00 1,265.00 4,280.28 21,544.00 60,856.17 0.03 9.43 0.29 0.86 7.76 5.36 1.00 0.27 1.36 0.17 9.25 0.27 1.03 180.00 415.00 372.00 1,712.00 4,052.85 2.90 6.70 6.00 27.62 65.43 10.11 0.25 1.73 6.00 28.12 83.30 NET INCOME OPERATING NET INCOME 2,142.65 2, 142.65 34.57 34.57 12,200.16 12,200.16 16.70 16.70