Read the information below and fill in the monthly amounts that follow: You find a $4-$unit

apartment building that needs some work. Similar buildings in good condition sell for $$300$k $($after repair value$).$

Assume that you pay $$185$k for the property, pay closing costs of $$10$k$,$ and make renovations costing $$30$k$.$

After you complete the renovations, you obtain four tenants and obtain a $$200,000$ mortgage for $15$ years at $5\mathrm{.}5\%.$

You are now ready to manage the property!

The following monthly per unit information is given: $($Remember$,$ there are four units$).$

Gross rental income, $$925$; Capital expenditures, $$125.$

Various yearly operating expenses are as follows: $($These costs are for all units, not per unit$).$

Advertising, $$96$; Bank charges, $$48$; Extermination, $$320$; Insurance, $$900$;

License, $$240$; Sewer & trash, $$1,800$; Taxes, $$5,520$; Utilities, $$336$; and Other, $$60.$

Legal & professional fees are $$1,920$ every ten years for tenant evictions $($$$480$ per unit $*4$ units$).$

$($Round off all answers to a whole dollar$).$

After entering the amounts above, your monthly 'Total Operating Expenses' on line $18$ should be $$1,359.$

Net Rental Income $($NRI$)$ Monthly Yearly

$1.$ Gross Rental Income $($GRI$)$ $$0$ $$0$

$2.$ Cost of vacancy $9\mathrm{.}0\%$ of GRI $9\%$ $$0$ $$0$

$3.$ Collection loss $1\mathrm{.}0\%$ of GRI $1\%$ $$0$ $$0$

$4.$ Net rental income $($NRI$)$ $$0$ $$0$

Operating Expenses

$5.$ Advertising $$0$ $$0$

$6.$ Bank charges $$0$ $$0$

$7.$ Condo$/$HOA$/$Association fee $$0$ $$0$

$8.$ Extermination $$0$ $$0$

$9.$ Insurance $($hazard & liability$)$ $$0$ $$0$

$10.$ Legal & professional $($incl$.$ lease fee$)$ $$0$ $$0$

$11.$ License $($rental$)$ $$0$ $$0$

$12.$ Management $7\%$ of NRI $7\%$ $$0$ $$0$

$13.$ Repairs & maintenance $($incl$.$ supplies$)10\%$ of NRI $10\%$ $$0$ $$0$

$14.$ Sewer & trash $$0$ $$0$

$15.$ Taxes $($property$)$ $$0$ $$0$

$16.$ Utilities $$0$ $$0$

$17.$ Other $($postage$,$ office$)$ $$0$ $$0$

$18.$ Total Operating Expenses $$0$ $$0$

$19.$ NOI $($Net Operating Income$)$ $$0$ $$0$

$20.$ Debt Service $($Principal & interest$)$ $$0$ $$0$

$21.$ Capital Expenditures $$0$ $$0$

$22.$ BTCF $$0$ $$0$

$20.$ Based on the above results, should you invest in this property?

$21.$ Why or why not? Your answer should reference Graber's $3$ Rules for purchasing a rental property

$1.$

$2.$

$3.$