Property Assumptions:

Purchase Price: $4,000000

Year 1 PGI: $540,000

PGI Growth Rate (Annual): 3%

Annual Vacancy and Collection Loss (VCL): 10%

Year 1 Operating Expenses (OER): 35%

OPEX growth rate after first year 2%

Sales Price:

-Capitalize HP+1 NOI at 9% $3,895,042

Anticipated Holding Period: 3 Years

Maximum LTV: 70%

Interest Rate: 5%

Amortization Rate: 30 Years

Payments Per Year: 12

Investor Hurdle Rate (Unleveraged): 15%

1. What is the Unleveraged IRR and NPV?
2. What is the DCR for Year 2?
3. What is the NOI for Year 3?
4. Does this investment meet the investors unleveraged required Rate of Return?
5. What is the Going In over all Capitalization Rate?
6. What is the Operating Expense Ratio for Year 3?
7. What is the Cash on Cash (BTCF) for Year 2?
8. What is the Mortgage Constant?