Atlas Realty Partners, a real estate investment company, is under contract to buy a 30-unit mixed-use apartment building in Brooklyn, NY for $11,000,000. The property consists of 28 apartments, each 850 square feet, renting for $2,400 a month per unit, and 2 stores - the first is a 2,000 square foot space with a yoga studio as the tenant in place, paying a $8,500 rent per month and the second is a 3,000 square foot space with a sport equipment store as the tenant, paying $11,500 rent per month. Vacancy rates in the area are 5% for ground floor commercial spaces and 3% for the apartments on the upper floors. The borrower owns several similar properties in the neighborhood and knows that expenses are about 30% of the effective gross income.

How much equity will the borrower need to invest if closing costs are $150,000?

How much is the free cash flow after debt service?

What is the borrower's cash on cash return?