Bob purchased a property for $6,500,000 at a 5.50% cap rate. At the time of purchase, there were 15 years remaining on the lease wth 7.50% rent increases every 5 years. Bob purchased the above property at 65% LTV, 25 -year amorization schedule, 10-year term, and at a 4.50% interest rate. Use this information for Questions 15. 1. What will his annual rent be when there are 8 years remaining on the lease? Round up to the nearest dollar, include $ sign (ex $100)2 2. What is Bob's annual debt service? Round to nearest dollis, show as a positive number include $ sign. (ex: $100 ) 3. What is Bobs cash on cash return as a percentage in year 5 ? Two decmai points, round up, include \% sign (ex 99.99% ) 4. What is Bobs NOI upside between year 1 and year 10 ? Two decimal points, round up, include % sign (ex. 99.99%) 5. BONUS CUESTION How much wil Bob owe on the pioperty when the loan comes due? Round up to nearest dollar include $ sign. (ex $100 : 6. Mr. Post is purchasing an apartment building that currenty has an annual gross income of $415.500. Afler a thorough analysis of the rental market he determines that if 6. Mr. Post is purchasing an apartment building that currently has an annual gross income of $415,500. After a thorough analysis of the rental market, he determines that if all units were increased to market rents, the annual gross income would be $550,150. Assuming these projections are accurate, what is the current rent upside as a percentage of the current rents? Round to nearest percentage point, no decirnals, include % sign. (ex: 99\%) You are about to get hired to sell a building for $4,700,000 at a 3.50% cap rate with a 5% fee and estimate 1% in additional transaction costs. The seller's original loan was $1,500,000 at a 5.00% interest rate on a 25 -year amortization schedule. You are recommending the seller purchase 2 NNN properties for $4,800,000 at a 6.00% cap rate and can replace his interest rate on a 30 -year amortization schedule with a new interest rate of 4.25%, keeping his original loan of $1,500,000. Use this information to answer Questions 715. 7. What is the seller's current NOI? Round to nearest dollar, include 5 sign. (ex $100) 8. What is the seller's current monthiy payments? Round to nearest dollar, show as a positive number, include $ sign. (ex $100 ) 9. What is the seller's current annual debt service? Round to nearest dollat, show as a positive number, include $sign(ex)$100) 10. What is the seller's current cash flow after debt service? Round to nearest dollar. include $ sign (ex $100): 11. What is NOI of the 2 new properties by the future NNN tenants? Include $ sign. (ex$100) 12. What is the seller's future annual debt service based on the new loan metrics? Round to nearest dollar, show as a positive number, include $ sign. (ex: $100) * 13. What is the seller's future net cash flow after debt service? Round to nearest dollar, include $ sign. (ex: \$100) 14. Did his cash flow increase or decrease?" 15. What is the percentage increase / decrease in his cashflow? Round to nearest percentage point, no decimals, include % sign. (ex. 100% ) Bob purchased a property for $6,500,000 at a 5.50% cap rate. At the time of purchase, there were 15 years remaining on the lease wth 7.50% rent increases every 5 years. Bob purchased the above property at 65% LTV, 25 -year amorization schedule, 10-year term, and at a 4.50% interest rate. Use this information for Questions 15. 1. What will his annual rent be when there are 8 years remaining on the lease? Round up to the nearest dollar, include $ sign (ex $100)2 2. What is Bob's annual debt service? Round to nearest dollis, show as a positive number include $ sign. (ex: $100 ) 3. What is Bobs cash on cash return as a percentage in year 5 ? Two decmai points, round up, include \% sign (ex 99.99% ) 4. What is Bobs NOI upside between year 1 and year 10 ? Two decimal points, round up, include % sign (ex. 99.99%) 5. BONUS CUESTION How much wil Bob owe on the pioperty when the loan comes due? Round up to nearest dollar include $ sign. (ex $100 : 6. Mr. Post is purchasing an apartment building that currenty has an annual gross income of $415.500. Afler a thorough analysis of the rental market he determines that if 6. Mr. Post is purchasing an apartment building that currently has an annual gross income of $415,500. After a thorough analysis of the rental market, he determines that if all units were increased to market rents, the annual gross income would be $550,150. Assuming these projections are accurate, what is the current rent upside as a percentage of the current rents? Round to nearest percentage point, no decirnals, include % sign. (ex: 99\%) You are about to get hired to sell a building for $4,700,000 at a 3.50% cap rate with a 5% fee and estimate 1% in additional transaction costs. The seller's original loan was $1,500,000 at a 5.00% interest rate on a 25 -year amortization schedule. You are recommending the seller purchase 2 NNN properties for $4,800,000 at a 6.00% cap rate and can replace his interest rate on a 30 -year amortization schedule with a new interest rate of 4.25%, keeping his original loan of $1,500,000. Use this information to answer Questions 715. 7. What is the seller's current NOI? Round to nearest dollar, include 5 sign. (ex $100) 8. What is the seller's current monthiy payments? Round to nearest dollar, show as a positive number, include $ sign. (ex $100 ) 9. What is the seller's current annual debt service? Round to nearest dollat, show as a positive number, include $sign(ex)$100) 10. What is the seller's current cash flow after debt service? Round to nearest dollar. include $ sign (ex $100): 11. What is NOI of the 2 new properties by the future NNN tenants? Include $ sign. (ex$100) 12. What is the seller's future annual debt service based on the new loan metrics? Round to nearest dollar, show as a positive number, include $ sign. (ex: $100) * 13. What is the seller's future net cash flow after debt service? Round to nearest dollar, include $ sign. (ex: \$100) 14. Did his cash flow increase or decrease?" 15. What is the percentage increase / decrease in his cashflow? Round to nearest percentage point, no decimals, include % sign. (ex. 100% )
