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Purchase Price: $8,625,000 Rents: Tenant Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Unit 8 Monthly Rent $4,658 $6,874

Purchase Price: $8,625,000

Rents:

Tenant

Unit 1

Unit 2

Unit 3

Unit 4

Unit 5

Unit 6

Unit 7

Unit 8

Monthly Rent

$4,658

$6,874

$9,658

$8,648

$7,613

$5,688

$6,804

$10,084

Year 1 NOI: $582,384

NOI Growth Rate: 3.15%

Loan:

LTV: 60%

Amortization Period: 25 years, Term: 7 years

Interest Rate: 4.75%

Lender Points: 1.25%

Selling Costs: 3%

Going Out Cap Rate: 6.45%

Discount Rate: 12%

Questions:

  1. What is the going in cap rate?
  2. What is year 1 PGI?
  3. What is the DSCR?
  4. What is your Initial Investment?
  5. What is the sale price after the five-year hold?
  6. What is the loan balance at sale?
  7. What is the NPV for this project?
  8. What is the IRR for this project?
  9. What is the DCF for this project?
  10. What is the reversion amount?

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