please set up pro forma and amortization table!!!

4 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 3 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 4 Assumptions 5. Monthly Rent Per Unit 6 Number of Units 7 Rent Growth (YEARLY B Vacancy/Collection Losses 9 Miscellaneous Income Per Month 10 OpX (YEARLY) 11 Opx Growth (YEARLY 12 Capx 11 Purchave Price (YEAR O) 14 Sale Price (YEAR) 15 Selling Expense 16 Required Return (RR) Unlevered Before Tax 17 Required Return (RR) Levered Before Tak 13 Regled Meturn (1) levered After Tax 19 Annual Taxes 20 Tones Due On Sale0% Proforma YR 1 YR 2 YA 3 YR 4 YRS YR 6 200 24 25 Potential Gross income 25 Vacancy and Collection 27 Miscellaneous Income 23 Effective Gross income 29 Ox Proforma Y1 YR 2 YR 3 YR 4 YR5 YR 6 Potential Gross income Vacancy and Collection Miscellaneous Income Effective Gross income OX 0 Net Operating Income 12 Debt Service 3 Before Tax Cash Flow Tas 35 Alter Tax Cash Flow 36 30 Initial Equity Investment 19 Acquesition Price 40 Loan Amount 41 Loan Expenses Equity Investment 15 4 sale price 47 Saint Expen 55 Net Sales Proceeds Cash Flow From Sale Of A Property Net Sales Proceeds Benin Moralance Before Tax Equity Reversion Before Taxity v The Due On Sale After Tax Equity Never 90 The Assignment DCF Amortization Sale Price Selline Expenses Net Sales Proceeds Cash Flow From Sale Of A Property Net Sales Proceeds Remaining Mortgage Balance Before Tax Equity Reversion Cash Flow From Operations YR 1 YR2 YRO YR 3 YR 4 YR 5 Unlevered Before Tax 4 Levered Before Tax 5 Levered Alter Tax Valuations NPV IRR 19 50 Unlevered Before Tax 1 Levered Before Tax 2 Levered After Tax 33 51 65. Going Out Terminal Cap Rate 06 67 D E F Payments B Amortization Table 2 3 4 Assumptions 5 Loan Amount (0%) 6 Loan Expenses (0%) 7 Loan Term 8 Amortization Term 9 Interest Only Period 10 Rate 11 12 13 14 Month Beginning Balance 15 16 17 18 19 PMT VO PMT Amortization Table Monthly Payment Principal Interest Ending Balance 20 21 22 23 24 25 26 27 The Aiman DO ANA 2 3 4 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 98%. 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 INN D G 3 4 Assumptions S Monthly Rent Per Unit 6 Number of Units 7 Rent Growth (YEARLY 8 Vacancy/Collection Losses 9 Miscellaneous Income Per Month 10 Opx (VARLY 11 Opk Growth (YEARLY) 12 CapX 13 Purchase Price (YEAR O) 14 Sale Price (VLAR) 15 Selling Expense 16 Required Return (RR) Unlevered Before Tax 17 Required Return (RR) Levered Before Tax 18 Required Return (RR) Levered After Tax 19 Annual Taxes 20 Taxes Due On Sale 20% 21 Proforma YR 1 YR 2 YR YR 4 YR 5 YR 6 23 24 25 Potential Gross income 26 Vacancy and Collection 27 Miscellaneous Income 25 Effective Gross Income 29 Opx 30 Capx The Assignment DCF Amortization AI Dhanted Cash Flow OO Net Oncome Det er Before tu cach 15 1 ACO 40 an PE cachowe OLAR Sales Pro maig Man Before Bet tasuta Det Aner Tay Neste 51 Collow Free YE V2 TRS 3 Lieder levereraretur LA THA DCF Atihan 56 Valuations NPV IRR 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 A B D E 4 1 Amortization Table 2 3 Assumptions 5 Loan Amount (.0%) 6 Loan Expenses (.0%) 7 Loan Term 8 Amortization Term 9 Interest Only Period 10 Rate Payments PMT VO PMT Amortization Table Monthly Payment Principal Beginning Balance Interest Month Ending Balance 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NEG 4 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 3 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 4 Assumptions 5. Monthly Rent Per Unit 6 Number of Units 7 Rent Growth (YEARLY B Vacancy/Collection Losses 9 Miscellaneous Income Per Month 10 OpX (YEARLY) 11 Opx Growth (YEARLY 12 Capx 11 Purchave Price (YEAR O) 14 Sale Price (YEAR) 15 Selling Expense 16 Required Return (RR) Unlevered Before Tax 17 Required Return (RR) Levered Before Tak 13 Regled Meturn (1) levered After Tax 19 Annual Taxes 20 Tones Due On Sale0% Proforma YR 1 YR 2 YA 3 YR 4 YRS YR 6 200 24 25 Potential Gross income 25 Vacancy and Collection 27 Miscellaneous Income 23 Effective Gross income 29 Ox Proforma Y1 YR 2 YR 3 YR 4 YR5 YR 6 Potential Gross income Vacancy and Collection Miscellaneous Income Effective Gross income OX 0 Net Operating Income 12 Debt Service 3 Before Tax Cash Flow Tas 35 Alter Tax Cash Flow 36 30 Initial Equity Investment 19 Acquesition Price 40 Loan Amount 41 Loan Expenses Equity Investment 15 4 sale price 47 Saint Expen 55 Net Sales Proceeds Cash Flow From Sale Of A Property Net Sales Proceeds Benin Moralance Before Tax Equity Reversion Before Taxity v The Due On Sale After Tax Equity Never 90 The Assignment DCF Amortization Sale Price Selline Expenses Net Sales Proceeds Cash Flow From Sale Of A Property Net Sales Proceeds Remaining Mortgage Balance Before Tax Equity Reversion Cash Flow From Operations YR 1 YR2 YRO YR 3 YR 4 YR 5 Unlevered Before Tax 4 Levered Before Tax 5 Levered Alter Tax Valuations NPV IRR 19 50 Unlevered Before Tax 1 Levered Before Tax 2 Levered After Tax 33 51 65. Going Out Terminal Cap Rate 06 67 D E F Payments B Amortization Table 2 3 4 Assumptions 5 Loan Amount (0%) 6 Loan Expenses (0%) 7 Loan Term 8 Amortization Term 9 Interest Only Period 10 Rate 11 12 13 14 Month Beginning Balance 15 16 17 18 19 PMT VO PMT Amortization Table Monthly Payment Principal Interest Ending Balance 20 21 22 23 24 25 26 27 The Aiman DO ANA 2 3 4 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 98%. 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 INN D G 3 4 Assumptions S Monthly Rent Per Unit 6 Number of Units 7 Rent Growth (YEARLY 8 Vacancy/Collection Losses 9 Miscellaneous Income Per Month 10 Opx (VARLY 11 Opk Growth (YEARLY) 12 CapX 13 Purchase Price (YEAR O) 14 Sale Price (VLAR) 15 Selling Expense 16 Required Return (RR) Unlevered Before Tax 17 Required Return (RR) Levered Before Tax 18 Required Return (RR) Levered After Tax 19 Annual Taxes 20 Taxes Due On Sale 20% 21 Proforma YR 1 YR 2 YR YR 4 YR 5 YR 6 23 24 25 Potential Gross income 26 Vacancy and Collection 27 Miscellaneous Income 25 Effective Gross Income 29 Opx 30 Capx The Assignment DCF Amortization AI Dhanted Cash Flow OO Net Oncome Det er Before tu cach 15 1 ACO 40 an PE cachowe OLAR Sales Pro maig Man Before Bet tasuta Det Aner Tay Neste 51 Collow Free YE V2 TRS 3 Lieder levereraretur LA THA DCF Atihan 56 Valuations NPV IRR 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 A B D E 4 1 Amortization Table 2 3 Assumptions 5 Loan Amount (.0%) 6 Loan Expenses (.0%) 7 Loan Term 8 Amortization Term 9 Interest Only Period 10 Rate Payments PMT VO PMT Amortization Table Monthly Payment Principal Beginning Balance Interest Month Ending Balance 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NEG