I. Calculate a Cap Rate of the property has an annual NOI of $105,000 and a value of $1,235,300.

J. Calculate the value of a property with a 6.0 cap rate and NOI of $80,000 per month.

General Assumptions Income Inflation Expense Inflation Cap Rate Discount Rate Property Tax Increase 3.00% 3.00% 5.50% 8.50% 2% Number of Units SF Rent/SF Income Assumptions Unit Type REG 1 BED 1 BED + DEN REG 2 BED 685 120 30 150 Rent per Month $1,995.00 $2,175.00 $2,790.00 $2.91 $2.47 $2.63 Annual Rent $2,872,800.00 $783,000.00 $5,022,000.00 880 1,060 Total 300 $8,677,800.00 Rentals Per Month 8 Other Income Assumptions Type Clubhouse Private Garages Structured Parking Misc income Discounts and Premiums Price Per Month $150.00 $0.00 $25.00 450 Annual Income $14.400,00 $0.00 $135,000.00 $0.00 $126,000.00 $35.00 Total $275,400.00 Potential Gross income Vacancy and Collection Loss Effective Gross Income Operating Expenses Type % of Purchase Price Per Unit Per Month % of EGI $18.00 $45 00 $20.00 $15.00 $155.00 $25.00 (per unit per year) 1.50 Electricity Water (Landscape Trash General Maintenance Insurance Property Taxes Management Fees Reserves for Replacements Elevator Maintenance Pool Maintenance Leasing Employees Maintenance Security Annual Expense -564 800.00 $162,000.00 -$72.00000 -$54.000.00 -$558 000 00 $7,500.00 -$1,350,000.00 $429.753.60 -$300 827 52 -$21,600.00 $57,600.00 -$107 438 40 -$128.926.08 $0.00 5.00% 3.50% $6.00 $16.00 1.25% 150% $0.00 Total Operating Expenses $3,314,445.60 Net Operating Income Capital Improvements Purchase and Sale Purchase Expenses Sale Expense 650% Investor Cash Flow Internal Rate of Return 8.84% Net Present Value $2.281545.55 YEARS Number of Units SF Rent/SF Income Assumptions Unit Type REG 1 BED 1 BED + DEN REG 2 BED 120 685 $2.91 Rent per Month Annual Rent $1,995.00 $2,872 800.00 $2,175.00 $783.000.00 $2.790.00 $5,022,000.00 30 880 $2.47 $2 872 800.00 $783,000.00 $5,022,000.00 $2,958,984.00 $3,047,753.52 $806,490.00 $830,684.70 $5,172,660.00 $5,327,839.80 $3,139,186.13 $855,605 24 $5,487,674.99 $3,233,361.71 $881,273.40 $5,652,305.24 $3,330,362.56 $907,711.60 $5,821,874.40 $3,430 273.44 $934,942.95 $5,996,530.63 $3,533,181.64 $3,639,177.09 $962,991 24 $991,880.97 $6,176,426.55 $6,361,719.35 $3,748 352.40 $3,860 802.97 $1,021,637.40 $1,052,286.53 $6,552,570.93 $6,749,148.06 150 1.060 $2.63 Total 300 $8,677,800.00 $8,677,800.00 $8,938,134.00 $9,206,278.02 $9,482,466.36 $9,766,940.35 $10,059,948.56 $10,361,747.02 M M $11,322,560.73 M Rentals Per Month $15.735.27 Other Income Assumptions Type Clubhouse Private Garages Structured Parking Misc Income Discounts and Premiums Price Per Month $150.00 $0.00 $25.00 0 450 Annual Income $14.400.00 $0.00 $135,000.00 $0.00 $126.000.00 $14,400.00 $0.00 $135,000.00 $0.00 $126,000.00 $14.832.00 2200 $0.00 $139,050.00 $0.00 $129,780.00 $15.276.96 $15 276 96 $0.00 $143.22150 $0.00 $129.780.00 $143.22150 $147518.15 S0.00 $147.518.15 S0.00 $129.780.00 $16,207.33 $0.00 $151943.69 $0.00 $129.780.00 $16,693.55 S0.00 $156 502.00 $0.00 $129.780.00 $17.194.35 $0.00 $161.197.06 S0.00 $129,780.00 $17.710.18 $0.00 $166.032.97 $0.00 $129,780.00 $18.24149 $0.00 $171013.96 $0.00 $129,780.00 $18.788.73 $0.00 $176.144.39 $0.00 $129,780.00 $19.352.40 $0.00 $191 428.71 $0.00 $129,780.00 $35.00 Total $275,400.00 $275,400.00 $283,662.00 $288,278.46 $293.033.41 $297931.02 $302.975,55 $308,171.41 $313,523.16 $319,035.45 $324,713.11 $330,561.11 Potential Gross Income $8,953,200.00 $9,221,796.00 $9,494,556.48 $9,775,499.77 $10,064871.37 $10,362 924.11 $10,669 918.43 MMMMMMMMMMMMMMMMMMMMMMMMMMM $11.647.273.85 MUMMULUUMUM Vacancy and Collection Loss -$358,128.00 $368,871.84 $379,782.26 $391,019.99 $402.594.85 $414,516.96 $426,796.74 $439,444.90 $452.472.51 $465,890.95 $479,711.95 Effective Gross Income $8,595,072.00 $8,852,924.16 $9,114,774.22 $9,384,479.78 $9,662,276.51 $9,948,407.14 $10,243,121.69 M. MUMUMAN $11.181.382.89 M Operating Expenses Type Price Per Unit Per Month of EGI of Purchase $18.00 $45.00 $20.00 $15.00 $155.00 $25.00 (per unit per year) Annual Expense $64,800.00 $162,000.00 $72,000.00 $54,000.00 -$558,000.00 $7,500.00 $87,085.78 $217,714.45 $96,761.98 $72,571.48 $749,905.34 $10,079.37 150% M Electricity Water Landscapel Trash General Maintenance Insurance Property Taxes Management Fees Reserves for Replacements Elevator Maintenance Pool Maintenance Leasing Employees Maintenance Security $64,800.00 $162,000.00 $72,000.00 $54,000.00 -$558,000.00 $7,500.00 $1,350,000.00 -$429,753.60 $300,827.52 $21,600.00 $57,600.00 $107,438.40 $128,926.08 $0.00 $66,744.00 $ 166,860.00 $74,160.00 - $55,620.00 $574,740.00 $7,725.00 $1,377,000.00 M $442,646.21 $309,852.35 $22,248.00 $59,328.00 $110,661.55 $132,793.86 $0.00 $68,746.32 $171,865.80 $76,384.80 $57,288.60 $591,982.20 $7,956.75 M $455,738.71 $319,017.10 $22,915.44 $61,107 84 $113,934.68 $136,721.61 $0.00 $70,808.71 $177,021.77 $78,676.34 $59,007 26 $609,741.67 $8,195.45 $1,432,630.80 $469,223.99 $328,456.79 $23,602.90 $62,941.08 $117,306.00 $140,767 20 $0.00 $72,932.97 $182,332.43 $81,036.63 $60,777.48 $628,033.92 $8,441.32 $1,461,283.42 $483,113.83 $338,179.68 $24,310.99 $64.829.31 $120,778.46 $144,934.15 $0.00 $75,120.96 $187,802.40 $83,467.73 $62,600.80 $646.874.93 $8,694.56 $1,490,509.08 $497,420.36 $348,194.25 $25,040.32 $66,774.19 $124,355.09 $149,226.11 $0.00 $77,374.59 $79,695.83 $ 193,436.47 $199,239.57 $85,971.77 $88,550.92 $64,478.82 $66,413.19 $666,281.18 $686,269.62 $8,955.39 $9,224.05 $1,520,319.27 -$1,550,725.65 M $512,156.08 $527,333.88 $358,509.26 $369,133.72 $25,791.53 $26,565.28 $68,777.41 $70,840.73 $128,039.02 $131,833.47 $153,646.83 $ 158,200.17 $0.00 $0.00 $82,086.70 $205,216.75 $91,207.45 $68,405.58 $706,857.71 $9,500.78 M $542,967.02 $380,076.91 $27,362 23 $72,965.96 $135,741.75 $162,890.11 $0.00 $84,549.30 $ 211,373.26 $93,943.67 $70,457.75 $728,063.44 $9,785.80 $1,613,374.97 M $559,069.14 $391,348.40 $28,183.10 $75,154.94 $139,767.29 $167,720.74 $0.00 5.00% 3.50% $6.00 $16.00 $429,753.60 $300,827.52 $21,600.00 $57,600.00 $107,438.40 -$129.926.08 $0.00 $575,654.34 $402,958.04 $29,028.59 $77,409.58 $143,913.58 $172,696.30 $0.00 1.25% 150% $0.00 Total Operating Expenses MUMMUMUMAN -$3,314,445.60 $3,400,378.97 M M $3,578,379.96 $3,670,984.56 $3,766,080.78 $3,863,737.62 $3,964,026.07 M $4,172,791.79 M Net Operating Income $5,280,626.40 $5,452,545.19 $5,626,574.37 $5,806,099.83 $5,991,291.95 $6,182,326.37 $6,379,384.07 $6,582,651.61 $6,792,321.24 $7,008,591.10 $7,231,665.41 Capital Improvements $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Purchase and Sale Purchase Expenses Sale Expense 150% 6.50% -$90,000,000.00 -$1,350,000.00 -$8,546,513.66 Investor Cash Flow -$91,350,000.00 $5,280,626.40 $5,452,545.19 $5,626,574.37 $5806,099.83 $5.991 291.95 $6.182.326 37 $6.379.384.07 $6.582.651.61 $6.792.321 24 MUHAMMAD Internal Rate of Return 8.84% Net Present Value $2,281,545.55