Question
Analyze the operating income & expenses receipts and cash flows to determine nominal net returns before and after taxes, Net present value, internal rate of
Analyze the operating income & expenses receipts and cash flows to determine nominal net returns before and after taxes, Net present value, internal rate of return, and sensitivity analysis. Any help is GREATLY appreciated!!
| Income | Year 1 | Year 2 | Year 3 | Year 5 | Year 10* | Year 20* | Year 30* |
| Gross Rent | $19,800 | $20,295 | $20,802.5 | $21,855.5 | $49,455 | $63,307 | $81,038 |
| Vacancy Loss | -$594 | -$609 | -$624 | -$655.5 | -$1,484 | -$1,899 | -$2,431 |
| Amenity & Tech Fee | $3,000 | $3,075 | $3,152 | $3,311 | $3,747 | $4,796 | $6,139 |
| Operating income | $22,206 | $22,761 | $23,330 | $25,166.5 | $51,718 | $66,203 | $84,746 |
| Expenses | Year 1 | Year 2 | Year 3 | Year 5 | Year 10* | Year 20* | Year 30* |
| Cleaning & maintenance | -$228 | -$235 | -$242 | -$256.5 | -$595 | -$800 | -$1,075 |
| insurance | -$252 | -$259.5 | -$267.5 | -$283.5 | -$658 | -$884 | -$1,188 |
| Management fees | -$1035.5 | -$1,061 | -$1,087.5 | -$1,143 | -$2,586 | -$3,310 | -$4,237 |
| Taxes | -$3,942 | -$4,060.5 | -$4,182 | -$4,437 | -$10,287 | -$13,825 | -$18,579 |
| Association Fees | -$2,280 | -$2348.5 | -$2,419 | -$2,566 | -$5,950 | -$7,996 | -$10,746 |
| Private M.U.D Fee | -$1,128 | -$1,162 | -$1196.5 | -$1,269.5 | -$2,944 | -$3,956 | -$5,316 |
| Operating expenses | -$8,865.5 | -$9,126 | -$9,394.5 | -$9,955.5 | -$23,019 | -$30,770 | -$41,141 |
Income inflation rate:2.5%
Expense inflation rate: 3.0%
Marginal tax rate: 22%
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Essentials Of Real Estate Finance
Authors: David Sirota
11th Edition
1419520911, 9781419520914
