Homework Project Without Debt
Given: Garden Apartment ABC in Kansas City
	Number of Garden Apartments	225
	Average monthly rent	$ 875.00
	Loss to lease (% of GPRI)	2.00%
	Vacancy & collection loss (% of GPRI)	8.00%
	Miscellaneous income (% of NRR)	4.00%
	Expense reimbursement (% of NRR)	4.00%
	Operating and leasing expenses (% of NRR)	43.00%
	CAPX/Inprovement Allowance (% of NRR)	9.00%
	Rent growth per year	2.00%
	Purchase Price:	$13,820,630
	Cap Rate:	10.00%
	Calculate the annual cost for the first year:
	IREM Format	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5
	Gross Potential Income (GPI)
	Less: loss to lease
	Less: vacancy, collections & concessions
	Net Rent Revenue (NRR)	0	0	0	0	0
	Add: miscellaneous income
	Add: expense reimbursements
	Effective gross income (EGI)	0	0	0	0	0
	Less: operating expenses
	Net Operating Income (NOI)	0	0	0	0	0
	Less: annual debt services	0	0	0	0	0
	Less Capex/Improve Allowance
	Before Tax Cash Flow (BTCF)	0	0	0	0	0
	Discount Rate	9.00%
	0	0
	1	0
	2	0
	3	0
	4	0
	5	0	+	0	0
	NPV =
	IRR =
	Sell price Cap Rate (NOI/CR)	9.50%			Sales Price	0
	Sales commission	5.00%				0
	Minus bank debt					0
	Net to seller					0
	Note: assume the NOI in year 6 is the same as year 5.