please complete discounted cash flow pro forma model and amortization table!

3 4 a Subject Property 5 This is a Class B duplex in Gainesville that you plan to renovate before leasing out to students in order to 6 command higher rents. You did your research and project the renovations to cost you $6,500 per unit in 7 year 1. You can purchase the property for $175,000 today and you believe that the total combined rent will 8 be $1,745 a month for the entire property with a 12 month lease. You also believe that your rent will grow 9 at a constant yearly rate of 1.5% and project that you will have vacancy and collection losses of 3% 10 annually since you secured creditable tenants. Both tenants will be charged $50 a month for their parking 11 spot, maintenance and utilities will cost you $4,000 annually, and the operating expenses will grow at 2% 12 yearly. Based on your assumptions you can sell your property in 5 years for $225,000. You expect there to 13 be selling expenses of 6%. You will not invest in this property unless you can realize an unlevered before 14 tax return of 10%, a levered before tax return of 14%, and a levered after tax return of 9.8%. You would like 15 to acquire the property with 60% financed by ABC Bank with a 15-year fixed interest rate loan at 3.5% per 16 year. You also negotiate to only pay interest for the six months. You will have to pay 3% in loan expenses 17 and you plan on using an amortization term of 30 years making this a fixed rate partially amortized loan 18 with an interest only period. Your yearly taxes will be $3,750 and you will have taxes due on sale of 4% on 19 the property. Once you complete the model, answer the quiz questions in canvas. 20 21 22 23 F D 4 Assumption 5 Monthly Rent Per Unit 6 Number of Units 7 Hent Growth (VEARLY Vacancy/Collection Losses 9 Miscellaneous income Per Month 10 OpX (VLARIVI 11 Opx Growth YEARLY 12 CapX 13 Purchase Price (YEAR O) 14 Sale Price (YEAR) 15 Selling Expense 16 Required Return (RR) Unlevered Before Tax 17. Required Return (RR) Levered Before Tax 13 Required Return (RRLevered After Tax 19 Annual Taxes 20 Takes Due On Sale 0% Proforma YR 1 YR 2 YN 3 YR 4 YR 5 YR 6 -34 25 Potential Gross income 26 Vacancy and Collection 27 Miscellaneous Income 25 Effective Gross income 29 Opx 30 Can 1 Net Operating Income D 11 Net Operating income 32 Dice 33 Before Tax Cash Flow 34 35 Altex Cashew 19 osition Price 40 Loan Ant 41 Loan Capers gulmet 43 Sale Price 7 Net Sales Proceeds Cash From Sole OLAR Totales Proces Marte Balance Before domy Rever Before Tasty version DOS Ata Tere Ganho Operations VO Y YR 4 VS Unlevered Before Tax 54 Levered Before Tox steveredtest Cash Flow From Operat YR 1 YR O Valuations 49 50 51 52 53 Unlevered Before Tax 54 Levered Before Tax 55 Levered After Tax 56 57 58 59 60 Unlevered Before Tax 61 Levered Before Tax 62 Levered After Tax 63 64 65 Going Out (Terminal) Cap Rate 66 67 68 NPV IRR CA SHISELINA B D Amortization Table Assumptions Loan Amount (0%) Loan Expenses (0%) Loan Term Amortization Term Interest Only Period Rate Payments PMT V/O PMT Month Beginning Balance Amortization Table Monthly Payment Principal Interest Ending Balance 3 4 a Subject Property 5 This is a Class B duplex in Gainesville that you plan to renovate before leasing out to students in order to 6 command higher rents. You did your research and project the renovations to cost you $6,500 per unit in 7 year 1. You can purchase the property for $175,000 today and you believe that the total combined rent will 8 be $1,745 a month for the entire property with a 12 month lease. You also believe that your rent will grow 9 at a constant yearly rate of 1.5% and project that you will have vacancy and collection losses of 3% 10 annually since you secured creditable tenants. Both tenants will be charged $50 a month for their parking 11 spot, maintenance and utilities will cost you $4,000 annually, and the operating expenses will grow at 2% 12 yearly. Based on your assumptions you can sell your property in 5 years for $225,000. You expect there to 13 be selling expenses of 6%. You will not invest in this property unless you can realize an unlevered before 14 tax return of 10%, a levered before tax return of 14%, and a levered after tax return of 9.8%. You would like 15 to acquire the property with 60% financed by ABC Bank with a 15-year fixed interest rate loan at 3.5% per 16 year. You also negotiate to only pay interest for the six months. You will have to pay 3% in loan expenses 17 and you plan on using an amortization term of 30 years making this a fixed rate partially amortized loan 18 with an interest only period. Your yearly taxes will be $3,750 and you will have taxes due on sale of 4% on 19 the property. Once you complete the model, answer the quiz questions in canvas. 20 21 22 23 F D 4 Assumption 5 Monthly Rent Per Unit 6 Number of Units 7 Hent Growth (VEARLY Vacancy/Collection Losses 9 Miscellaneous income Per Month 10 OpX (VLARIVI 11 Opx Growth YEARLY 12 CapX 13 Purchase Price (YEAR O) 14 Sale Price (YEAR) 15 Selling Expense 16 Required Return (RR) Unlevered Before Tax 17. Required Return (RR) Levered Before Tax 13 Required Return (RRLevered After Tax 19 Annual Taxes 20 Takes Due On Sale 0% Proforma YR 1 YR 2 YN 3 YR 4 YR 5 YR 6 -34 25 Potential Gross income 26 Vacancy and Collection 27 Miscellaneous Income 25 Effective Gross income 29 Opx 30 Can 1 Net Operating Income D 11 Net Operating income 32 Dice 33 Before Tax Cash Flow 34 35 Altex Cashew 19 osition Price 40 Loan Ant 41 Loan Capers gulmet 43 Sale Price 7 Net Sales Proceeds Cash From Sole OLAR Totales Proces Marte Balance Before domy Rever Before Tasty version DOS Ata Tere Ganho Operations VO Y YR 4 VS Unlevered Before Tax 54 Levered Before Tox steveredtest Cash Flow From Operat YR 1 YR O Valuations 49 50 51 52 53 Unlevered Before Tax 54 Levered Before Tax 55 Levered After Tax 56 57 58 59 60 Unlevered Before Tax 61 Levered Before Tax 62 Levered After Tax 63 64 65 Going Out (Terminal) Cap Rate 66 67 68 NPV IRR CA SHISELINA B D Amortization Table Assumptions Loan Amount (0%) Loan Expenses (0%) Loan Term Amortization Term Interest Only Period Rate Payments PMT V/O PMT Month Beginning Balance Amortization Table Monthly Payment Principal Interest Ending Balance