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NEED EXCEL FORMULAS PLEASE Part A - Unlevered 213 Marlinton Street is a two-story, three-unit building in a desirable urban neighborhood near a large funiversity
NEED EXCEL FORMULAS PLEASE
Part A - Unlevered 213 Marlinton Street is a two-story, three-unit building in a desirable urban neighborhood near a large funiversity campus that you are entertaining purchasing and holding as a long-term investment. It is |currently listed for $310,000 or $103,333 per unit. The first floor contains a 2BR/1BA unit rented for $1,050 per month. The second floor contains two 1BR/1BA units. The front unit has a private balcony land is rented for $900 per month, and the other unit is rented for $865 per month. The seller's Irepresentative provided you with historical income data suggesting that the seller has collected about $25 per month from each tenant in the form of late fees, pet fees, and laundry income. The property Ialso has a detached garage accessible from the alley that one of the tenants currently rents for an ladditional $30 per month. A local property manager you met at the wedding of a mutual friend who manages several buildings in this neighborhood told you that the rentals rates at the building appear reasonable and that vacancy Irates have historically hovered around 5.00% with some seasonable variability around the beginning and lend of the fall semester. Historically, rents have increased by about 5% per year, while other income tends to remain flat, increasing maybe 1% per year. As a back-of-the-envelope measure, operating expenses in this market typically run at about 35% of effective gross incomeStep by Step Solution
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