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please do rent roll model, DCF model, and Amortization model with formulas! 1 The Assignment 2 3 Assignment You are investing in 205 unit student
please do rent roll model, DCF model, and Amortization model with formulas!
1 The Assignment 2 3 Assignment You are investing in 205 unit student housing complex that you bought for $30,000,000 and plan to sell the property in 15 years, You financed 65% of the property by ABC 6 Bank with a 15 year fixed interest rate loan at 475 per year and will have to pay 25% in loan expenses. You have a 2 year interest only period and will have an amortization teem of 30 years. You will have annual taxes of $20,000 for the next 15 years and will have taxes due on sale of 4on the property. You hope to receive a 10% unlevered 8 return, 14 levered return on the property before taxes, and a 9.8% levered return after taxes. The apartment has 40 units with 1 bed/1 bath, 45 units with 2 beds/1 bath, 65 units with 3 beds/2 baths, and 55 units with 4 beds/4 baths. After doing your due diligence, you project the 1/1 units to rent for $1,200/roon/month, the 2/1 units to rent for 10 S850/room/month, the 2/2 units to rent for $1000/room/month and the 4/4 units to rent for $750/room/month Each lease will be for 12 months and you project the rent to 11 increase by 3% for the first 2 years and then stabilito 15% for the remainine years. You also expect the vacancy and collection losses to be 12% in the first year and then 12 decrease by 4% for each year until stable in year 3 at 4% for the remaining years. Your operating expenses include basic maintenance on the property totaling $10,000/month 13 a property management fee of $18,000/month, and a salary of $8.000/month/employee for the employees on site. You also have $85,000 of other expenses and utilities each 14 month and your total operating expenses will grow at a rate of 35% yearly. You will also have miscellaneous Income of $50/room/month for a pet fee, in which you project IS 20% of the room total to have pets, and $100/room/month for parking in which you project 85% of the room total to need a parking spot. Because you noticed the apartment 16 complex's external paint was chipping away when you inspected it, you decide to put a fresh point on the external buildines to become more visually appealing in year 1 17 costing you $20,000. You also plan to add some firepits, picnic tables, and some shaded covered areas around the pool in year 2 costing you $65,000. After 15 years when you 18 go to sell the property, you find out that comparable properties are selling at an average cap rate of 5 5% and that you will have 6% selline expenses. 19 1 The Assignment 2 3 Assignment You are investing in 205 unit student housing complex that you bought for $30,000,000 and plan to sell the property in 15 years, You financed 65% of the property by ABC 6 Bank with a 15 year fixed interest rate loan at 475 per year and will have to pay 25% in loan expenses. You have a 2 year interest only period and will have an amortization teem of 30 years. You will have annual taxes of $20,000 for the next 15 years and will have taxes due on sale of 4on the property. You hope to receive a 10% unlevered 8 return, 14 levered return on the property before taxes, and a 9.8% levered return after taxes. The apartment has 40 units with 1 bed/1 bath, 45 units with 2 beds/1 bath, 65 units with 3 beds/2 baths, and 55 units with 4 beds/4 baths. After doing your due diligence, you project the 1/1 units to rent for $1,200/roon/month, the 2/1 units to rent for 10 S850/room/month, the 2/2 units to rent for $1000/room/month and the 4/4 units to rent for $750/room/month Each lease will be for 12 months and you project the rent to 11 increase by 3% for the first 2 years and then stabilito 15% for the remainine years. You also expect the vacancy and collection losses to be 12% in the first year and then 12 decrease by 4% for each year until stable in year 3 at 4% for the remaining years. Your operating expenses include basic maintenance on the property totaling $10,000/month 13 a property management fee of $18,000/month, and a salary of $8.000/month/employee for the employees on site. You also have $85,000 of other expenses and utilities each 14 month and your total operating expenses will grow at a rate of 35% yearly. You will also have miscellaneous Income of $50/room/month for a pet fee, in which you project IS 20% of the room total to have pets, and $100/room/month for parking in which you project 85% of the room total to need a parking spot. Because you noticed the apartment 16 complex's external paint was chipping away when you inspected it, you decide to put a fresh point on the external buildines to become more visually appealing in year 1 17 costing you $20,000. You also plan to add some firepits, picnic tables, and some shaded covered areas around the pool in year 2 costing you $65,000. After 15 years when you 18 go to sell the property, you find out that comparable properties are selling at an average cap rate of 5 5% and that you will have 6% selline expenses. 19 Step by Step Solution
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