Create a real estate investment plan/portfolio based on the following information. Use Cap Rate, NOI, and ROI to determine which is the best investment strategy and why. 1. Your terms: a. 100,000 in funds b. Credit line for 200,000 (loans terms are minimum 20% down payment, LTV is 70%) c. 30-year mortgage fixed Interest rate for credit is 3.50% d. 15-year mortgage fixed interest rate for credit is 2.50% e. Balloon rate 2% for the first 6 months; rises to 9.99% f. All square footage for properties are the same for each property category 2. Market area #1 a. Basics i. Area is located 2.5 hours of your home area ii. Population- Growing at a rate of 6% per year. iii. Sales of SFM are taking place within 4 months of listing iv. Sales of Multifamily/apartment homes are taking place within 5 months of listing v. Sales of commercial property are taking place within 8 months of listing vi. Economy - second stage of economic cycle vii. Residential vacancy rate - 90% viii. Commercial vacancy rate - 80% b. Residential i. Single Family Homes 1. 3/2, same living square meters 2. Price: 200,000, 3. ARV: 300,000, 4. Investment: 50,000, 5. Comparables: 315,000; 6. Rent: 1500.00 per month before renovations, 2500.00 AFR per month; 7. Operating Expenses to include or consider: maintenance of about 5% of rent, 10% of rent for management, presume tenants pay utilities 8. Close to schools and supermarkets ii. Multifamily Homes (6 units) - 1. Price: 800,000, 2. ARV: 1,200,000, 3. Investment: 175,000, 4. Comparables: 1,300,000; 5. Rent: 1,250.00 per unit before renovations per month, 2,000.00 AFR per unit per month; 6. Close to main highways and airport; 7. Operating Expenses to include or consider: maintenance of about 8% of rent, 10% of rent for management, presume tenants pay utilities iii. Apartment buildings (14 units)- 1. Price: 950,000, 2. ARV: 1,400,000, 3. Investment: 250,000, 4. Comparables: 1,500,000; 5. Rent: 1,300.00 per unit before renovations per month, 2300.00 AFR per unit per month; 6. in urban center, 7. Operating Expenses to include or consider: maintenance of about 8% of rent, 10% of rent for management, presume tenants pay utilities c. Commercial i. Offices (20 units) Class B 1. Price: 1,950,000, 2. ARV: 2.600,000, 3. Investment: 350,000, 4. Comparables: 2,800,000; 5. Rent: 7,500.00 per unit before renovations per month, 10,000.00 AFR per unit per month 6. Operating Expenses to include or consider: 20% of rent for management, 6% of rent for repairs, and presume tenants pay utilities and CAM ii. Retail 1. Price: 1,500,000, 2. ARV: 2.100,000, 3. Investment: 450,000, 4. Comparables: 2,200,000; 5. Rent: 10,500.00 per unit before renovations per month, 14,000.00 AFR per unit per month 6. Operating Expenses to include or consider: 20% of rent for management, 10% of rent for repairs, and presume tenants pay utilities and CAM 3. Market area #2 a. Basics i. Area is located 7 hours of your home area ii. Population- Growing at a rate of 8% per year. iii. Sales of SFM are taking place within 5 months of listing iv. Sales of Multifamily/apartment homes are taking place within 3 months of listing v. Sales of commercial property are taking place within 8 months of listing vi. Economy - between second and third stage vii. Residential vacancy rate - 80% viii. Commercial vacancy rate - 75% b. Residential i. Single Family Homes 1. 3/2, same living square meters 2. Price: 250,000, 3. ARV: 400,000, 4. Investment: 55,000, 5. Comparables: 385,000; 6. Rent: 1900.00 before renovations, 2800.00 AFR; 7. Close to schools, supermarkets, movie theaters, and parks, 8. Operating Expenses to include or consider: maintenance of about 5% of rent, 10% of rent for management, presume tenants pay utilities ii. Multifamily Homes (3-7 units) 1. Price: 700,000, 2. ARV: 1,150,000, 3. Investment: 150,000, 4. Comparables: 1,225,000; 5. Rent: 2,000.00 before renovations, 2,400.00 AFR; 6. Close to main highways and airport, 7. Operating Expenses to include or consider: maintenance of about 8% of rent, 10% of rent for management, presume tenants pay utilities iii. Apartment buildings (8 units or more)- 1. Price: 1,000,000, 2. ARV: 1,500,000, 3. Investment: 300,000, 4. Comparables: 1,550,000; 5. Rent: 2100.00 before renovations, 2650.00 AFR; 6. Urban center, 7. Operating Expenses to include or consider: maintenance of about 8% of rent, 10% of rent for management, presume tenants pay utilities c. Commercial i. Offices (20 units) 1. Class B 2. Price: 1,775,000, 3. ARV: 2.500,000, 4. Investment: 300,000, 5. Comparables: 2,650,000; 6. Rent: 7,000.00 per unit before renovations per month, 9,500.00 AFR per unit per month 7. Operating Expenses to include or consider: 20% of rent for management, 6% of rent for repairs, and presume tenants pay utilities and CAM ii. Retail 1. Price: 1,350,000, 2. ARV: 1,800,000, 3. Investment: 275,000, 4. Comparables: 1,900,000; 5. Rent: 8,500.00 per unit before renovations per month, 12,500.00 AFR per unit per month 6. Operating Expenses to include or consider: 20% of rent for management, 10% of rent for repairs, and presume tenants pay utilities and CAM