Assume you have found an investment property near NYC, which you plan to renovate (mostly repair, maintenance and a few touch-ups). It is fully rented and will remain so during renovation. The property has the following data: Asking Price: $3.5 million Lot: 30' x 70' FAR: 5.0 The building is built full to the allowable FAR Upon analysis, you have estimated the following revenue and expenses for the property: Rent-Roll (entire building) for the first year: $350,000 Operating Expenses (entire building) for the first year: $75,000 Renovation Costs (entire building): $315,000 Project Soft Costs (including closing and carry): $250,000 You feel that you can sell the property at the end of 3 years (at a Cap Rate of 6.0% based on the Year 3 NOI). Your financing connection has made you the following offer: Self-Amortizing Loan (Principal + Interest) Loan-To-Cost: 65% Interest Rate: 6.00% Fixed Amortization schedule: 30 Years No early pre-payment penalty or any other fee Prepare a 3-year Pro-forma including rent escalations of 3% per year and 2% increases on operating expenses. (4 points) Answer the following: (4 points each) a) What is the total