Question
Given the following information provide an analysis that answers the questions at the end of the assignment. Purchase Price: $4,250,000 Rents: Tenant Unit 1 Unit
Given the following information provide an analysis that answers the questions at the end of the assignment.
Purchase Price: $4,250,000
Rents:
Tenant | Unit 1 | Unit 2 | Unit 3 | Unit 4 | Unit 5 | Unit 6 | Unit 7 | Unit 8 |
Monthly Rent | $5,400 | $5,400 | $6,200 | $3,500 | $3,600 | $3,300 | $3,700 | $3,100 |
Year 1 NOI: $248,678
NOI Growth Rate: 2.6%
Loan:
LTV: 75%
Amortization Period: 25 years, Term: 10 years
Interest Rate: 3.35%
Lender Points: 2%
Selling Costs: 3%
Going Out Cap Rate: 5.5%
Discount Rate: 10%
Questions:
- What is the going in cap rate? 5.85%
- What is year 1 PGI? $410,400
- What is the DSCR?
- What is your Initial Investment? $3,187,500
- What is the sale price after the five-year hold? $3,272,500
- What is the loan balance at sale? $977,500
- What is the NPV for this project? $176,322
- What id the IRR for this project? 33.33%
- What is the DCF for this project?
- What is the reversion amount?
The bolded answers are the ones I have so far but I believe they are wrong, can someone help and make sure if they are right too and help me answer the other questions as well?
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