Real Estate Finance and Investment Class

Paragraph 4 AaBbCcDd AaB 1 Normal T No You are a real estate investor that has an interest in purchasing a multifamily property in Atlanta, Georgia. You received the offering brochure and you discovered that this is a 100 unit apartment complex near the Grove Park. In using your analytical skills, including your ability to analyze this market, perform a Before Tax/ No Financing Analysis on this apartment complex. The market information is as follows: 26. 27. 28. Rents are $900 per month and will increase at a rate of 3% per year. Vacancy rates are 5% There is laundry income in year 1 in the amount of $1,600 and will continue to increase at a rate of 2% per year. 29. | 30. Operating expenses are estimated to be approximately 44% of collected income. Sales price should be calculated using Year 6 NOI capped at 5% 31. Cost of sale is 5% Using the worksheet on the below conduct a Before Tax/ No Financing Analysis and answer the following questions: Cash Flow Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Potential Rental Income Vacancy & Credit Losses Effective Rental Income Other Income Gross Operating Income Operating Expenses Net Operating Income