Question
Question 1: Assuming that the property's capitalization rate that you determined, above is also the market rate, and assuming this market rate will remain constant,
Question 1:
Assuming that the property's capitalization rate that you determined, above is also the market rate, and assuming this market rate will remain constant, develop an estimate of the property's market value at the end of the projected holding period.
| Reconstructed Operating Statement | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |
| Potential Gross Rent | $457,200.00 | $466,572.60 | $476,137.34 | $485,898.15 | $495,859.07 | $506,024.18 | $516,397.67 | $526,983.82 | |
| Allowance for Vacancies: Less | $27,432.00 | $27,432.00 | $27,432.00 | $27,432.00 | $27,432.00 | $27,432.00 | $27,432.00 | $27,432.00 | |
| Other Income | $10,000.00 | $10,205.00 | $10,414.20 | $10,627.69 | $10,845.56 | $11,067.90 | $11,294.79 | $11,526.33 | |
| Effective Gross Income | $439,768.00 | $449,345.60 | $459,119.54 | $469,093.85 | $479,272.63 | $489,660.07 | $500,260.46 | $511,078.16 | |
| Less: | |||||||||
| Property Tax | $85,039.00 | $85,039.00 | $85,039.00 | $93,543.00 | $93,543.00 | $93,543.00 | $93,543.00 | $102,897.00 | |
| Other Income (Super expense plus free rent expense) | $25,240.00 | $25,757.42 | $26,285.45 | $26,824.30 | $27,374.20 | $27,935.37 | $28,508.04 | $29,092.46 | |
| Insurance | $13,300.00 | $13,572.65 | $13,850.89 | $14,134.83 | $14,424.60 | $14,720.30 | $15,022.07 | $15,330.02 | |
| Workers Compensation | $145.00 | $147.97 | $151.01 | $154.10 | $157.26 | $160.48 | $163.77 | $167.13 | |
| Utilities | $1,140.00 | $1,163.37 | $1,187.22 | $1,211.56 | $1,236.39 | $1,261.74 | $1,287.61 | $1,314.00 | |
| Supplies and Miscellaneous Expenses | $1,319.30 | $1,346.35 | $1,373.95 | $1,402.12 | $1,430.86 | $1,460.19 | $1,490.13 | $1,520.67 | |
| Professional Property Management Fees | $26,386.08 | $26,386.08 | $26,386.08 | $26,386.08 | $26,386.08 | $26,386.08 | $26,386.08 | $26,386.08 | |
| Landscaping and Snow Removal | $2,500.00 | $2,551.25 | $2,603.55 | $2,656.92 | $2,711.39 | $2,766.97 | $2,823.70 | $2,881.58 | |
| Maintenance Staff | $12,000.00 | $12,246.00 | $12,497.04 | $12,753.23 | $13,014.67 | $13,281.47 | $13,553.74 | $13,831.60 | |
| Total Operating Expenses | $167,069.38 | $168,210.09 | $169,374.18 | $179,066.14 | $180,278.45 | $181,515.61 | $182,778.14 | $193,420.54 | |
| Annual Net Operating Income | $272,698.62 | $281,135.51 | $289,745.36 | $290,027.71 | $298,994.18 | $308,144.46 | $317,482.32 | $317,657.61 | |
| Capitalization Rate | 8.39% | 8.65% | 8.92% | 8.92% | 9.20% | 9.48% | 9.77% | 9.77% | |
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ISO 27001 Handbook Implementing And Auditing An Information Security Management System In Small And Medium Sized Businesses
Authors: Cees Van Der Wens
1st Edition
1098547683, 978-1098547684
