Determine: Lender's Interest Rate? Break-even Vacancy Factor? Market Rent for Property: 55 2-Bedroom Apt @ $525/mo. 20 3-Bedroom Apt @ $675/mo. Other Income: Coin Laundry/Vending @ $250/mo. Monthly Income (sum of all incomes above) Annual Income (Monthly Income x 12) Less Vacancy Factor of 5% Adjusted Gross Income (Annual Income - Vacancy Factor) Less Estimated Expenses of 34.65% Net Income before Debt Service (AGI- Estimated Expenses) Capitalized Value @ 9.5% (Net Income / 9.5%) Loan Requested Value = $2,275,000 Planned ROR = 10% Loan/Value Ratio (Loan Requested / Capitalized Value) Lender's Interest Rate: Int% = [Cap Rate - (ROR%) (% Developer)] /%Lender Break-even Vacancy Factor: Annual Debt Service = Loan Amount x Lender's Interest Rate Annual Expenses (from above) = Adjusted Gross Annual Income (from above) = Break-even Vacancy Factor: 1-[(Annual Debt Service + Operating Expense) / (Adjusted Gross Income)]

Break-even Vacancy Faction: Annual Debt Service = Lan Amount x Lender's interest hate Annual Expenses (from above) n Treak-even Wacancy Factee