QUESTION 1 Use the following Purchase Assumptions and Income Statement to answer the questions in this exam: PURCHASE ASSUMPTIONS Asset Sale Price = $2.2 million Down Payment = $550,000 Loan Interest 6.65% Loan Term 20 years CASH FLOW STATEMENT FY 20XX Gross Potential Income (GPI): $396,000 -Loss to Lease: ($12,000) -Vacancy and Collection Loss: ($20,500) Net Rent Revenue: $363,500 + Miscellaneous Income: $2,300 +Utility Reimbursement: $25,000 Effective Gross Income (EGI): $390,800 Operating Expenses - Utilities: ($45,000) - Maintenance: ($58,000) - Administration: ($12,500) - Management Fee: ($35,000) - Insurance: ($13,500) -Real Estate Taxes: ($28,000) Total Operating Expenses: ($192,000) Net Operating Income (NOI): $198,800 Calculate the Loan-to-Value (%) for this property.