B) Creating a Proforma Statement (Year 1 NOI) Use the following information to Create a Proforma statement for an Apartment building resulting in a Year 1 NOI Estimate.

I recommend you do the calculations in MS Excel and then copy the excel file to this MS word file. (insert the proforma table here). Make sure to identify key data items like (PGI, EGI, Costs, NOI).

An Apartment building has 10 two-bedroom units that rent for $2000 a month with a 12% Vacancy Rate and 5 one- bedroom units that rent for $1200 a months with a 6% Vacancy Rate.

Extra Revenue (Parking and Laundry Room Revenue)x: 1% of EGI

Management Fees are 15% of EGI

Property Taxes are $20,000 per year/

Maintenance fees are fixed at $40,000 per year.

TIP: Estimate EGI separately for the two and one-bedroom units, then combine them and do the rest of the calculations (subtracting various costs and adding other income to get NOI)

C) What is the market value of the property using the previously calculated cap rate?