Given Scenario: 20 apartments that rent for $1000 per month each 5% Vacancy rate Expenses: Variable expense ratio of 20% of effective rent plus fixed expenses (not including mortgage) of $22,400 Interest: 5% Monthly Debt Service $9900 REQUIRED: 1. Calculate the NOI. 2. Identify the Sales price based on the following capitalization rates: a. 8% b. 10%, C. 12% d. Which is better for the buyer? The seller? 3. Identify the break-even point in rent? Units? 4. If the above complex is purchased for the price in answer 2A, and the bank will loan based on a 75% LTV, how much must the buyer invest? 5. What is the first year ROI based on Net Cash Flow before depreciation and taxes? The investment used is the answer to Question 4 above. Given Scenario: 20 apartments that rent for $1000 per month each 5% Vacancy rate Expenses: Variable expense ratio of 20% of effective rent plus fixed expenses (not including mortgage) of $22,400 Interest: 5% Monthly Debt Service $9900 REQUIRED: 1. Calculate the NOI. 2. Identify the Sales price based on the following capitalization rates: a. 8% b. 10%, C. 12% d. Which is better for the buyer? The seller? 3. Identify the break-even point in rent? Units? 4. If the above complex is purchased for the price in answer 2A, and the bank will loan based on a 75% LTV, how much must the buyer invest? 5. What is the first year ROI based on Net Cash Flow before depreciation and taxes? The investment used is the answer to Question 4 above