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Please solve all three parts and show work on excel thank you! Part A - Unlevered 930 Bridgeport Avenue is two-story, three-unit builllding in a

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Please solve all three parts and show work on excel thank you!
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Part A - Unlevered 930 Bridgeport Avenue is two-story, three-unit builllding in a desirable urban neighborhood neara large university ca mpus that you are entertaining purchasing and holding as a jong-tem investment! lit is currentivllstei for $235$000 or $78,333 per unit The first floor contains a 2BR/1BA unit rented eor $950 per The second floor contains two IBR/IBA units. The front unit has a private balcony and is for $750 per month, and the other unijt is rented for $700 per month, The seller"s representativ proydeg you with historical income data suggesting that the seller has collected about $35 per ynonth from each tenantin the form of late fees, pet fees, and laundry income!The proper9 also has a detached garage accessible from the alley that one ofthe tenants rents for an addi'tjpoai $30 per month* 34 A local rope mapageryoy met at the wedding ofa mutual fiend who manages several nlgfiborhoo tl you that the renta Is rates at the building appear reasonable and thatOacancy jraes historicaily Ihovered around 5.00% with some seasonable variability beginning, and; Of' the fa III Historically, rents have increased by about 5% endi Qo remain flat, increasing maybe 1% per yean As a back-of-the envelope rpeasure peftiog this market typjcally run at about 35% ofeffectjve gross 27 28 29 31 32 33 35 36 37 Part B -Answers Part B - Questions ow muckcash Shouid ou bud etto make this investment? B2 What is ounex ectedflhhiljldebt service a, ment? B3 What is our ui dlivleni raite iin earl? B4 What is' out before-taxesh flow in ear 3? B6 At the end of five ears, how moch will ou stillowe on the mort a e? Ing if you sell the property and pay off the Joan at the end of to earn 13.00% on your equity Bj!?] WhatiSthe levera ed intemal rate of retum IRR ? u "id n?! to sell your property and instead, refinance your loan balance atthe end of (j years, oc debtcoverage ratio of 1.25 in year 6 if interest rates 11 12 Part A Questions 13 '"What the EGI in ear 17 What effective ross income httulti lierdoes this im based on the list rice forthe ro e ? 15 A31 'Whatisthe NOI in earl? 16 Adll/lff/ '(Whatca rate does that im based on the list rice for the ro e ? 17 18 hold fhi' ent for five yefF and you anticipate you can sell the property at a rma incomevlhow much do you expect to sell the 19 A fora what are e needs to generate a target 21 ro e while stillmeetin that 0b ective? A9 Would ou urchase this +0 at itSicUrreht list ce? 22 BIO [ilncrease '308 basis own s, all other terms bein e ual? 38 39 Part C 40 PartA - Answers 1 assuming you purchasf the 23 AIO rice? 24 25 Part B - Levered 5.500/0 tet year amortizati0?i pe to secure for other 26 27 Part B - Questions 29 Bl Considerin the 41 43 Cl Q 46 C3 47 C4 48 C5 49 C6 C7 C8 52 C9 secure yutlloa cah also be amortizef frid deducted from your income. Itis also importantto pemembef mortgage interest is also tax deductible. Your accountant explained that when you pseliith PFOperty tthe end thf fiveuyarkolding period, you should budget fora depreciation tax rate Of that gains earned from the sale of the will be taxed at public reprds reveled that the building is currently "Sessed for of which th 110 te 208850 to the improvements, The remainder/is allOcated tothe une?ying Part C - Quesons Part C - Answers How much will ou a in ryiort a e interestin earl? How much will ou in mort einterest liln ear3? What is our taxable incomel or16ss 'in eat2? What is ourantici acedfter x cashfloWi ear 2? What is our aftek*tak dividen rateilrii: earl? how muc e ca o riod? How much ghoul I' Ktiitl ewin 'in de reciation reca ture taxu on Sellin the ro e ? What will ouradus djb o gellin thel' roe ? Assuming IJI tyyOneedtOearn p.OO% on your equity investment, WhCI sentGie NPV ? Part B- Answers b d etto ake this investment? e B2 What is our ex ected annll b a merit? Ready Accessibility: Investigate 53 CIO What is the levera edlJl friajthteofretum 'IRR 54 56 57 58 Ready Accessibility: Investigate

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