FRL $306$

Worksheet Assignment: Real Estate Pro Forma Analysis for Apartment Building

Investment

Investment Scenario:

You are considering investing in a multi$-$family apartment building located in a growing urban

area. The property comprises $18$ units, a mix of $7$ one$-$bedroom with the remaining two$-$bedroom

apartments.

The Gross scheduled income is $$27,705$ per month, and Operating Expenses are estimated at

$$6500$ per unit annually. No CapEx is planned at this time.

The asking price for the property is $$4,950,000.$ You plan to finance the purchase with a $30\%$

down payment and a $70\%$ mortgage loan at a fixed interest rate of $4\%$ per annum over a

$30-$year term. Your objective is to analyze this investment opportunity's financial feasibility and

potential returns.

Number of Units?

Unit Mix $?$

Asking Pricew $?$

Financing

Equity?

Loan Amount?

INterest Rates?

Loan Terms $($ in months$)?$

Annualized Debt Service?

Income?

Gross Scheduled Income?

Vacancy Loss?

Effective Gross Income?

Operating Expenses?

OpEx as $\%$ of EGI?

Net Operating Income?

Cash Flow?

Cap Rate?

Cash$-$on$-$Cash Return?