REAL ESTATE MANAGEMENT Given the following complete the questions below: You are a manager of a 40 unit apartment complex (20 one bedroom 1 bath units and 20 studio units] The one bedroom units rent for $2,100 per month and the studio units rent for $1,500 per month Over the last two yearsyou have averaged 10%vacancy loss in each of the unit types. Your expenses are equal to the following: $110,000 per year (F) $70,000 per year (F) $5,000 per year(F) $20,000 per year (F) $10,000 per year (F) $300 per month for 1 bedroom $250 per month for studio Property Taxes Grounds Maintenance Variable cost Variable Cost Typical investors borrow 75% of the purchase price. Current tems are 7% fixed 20 years. Typical investors given the apartment complex market characteristics and condition would want a 14% rate of return on equity. 1. Show the income and expense statement down to NOI 2. Calculate the operating expense ratio 3. Calculate the capitalization rate, 4. Calculate the estimated market value and value per unit 5. Calculate the debt service if purchased for the estimated market value 6. Calculate the BTCF 7. Calculate the break-even point in units 8. Draw a graph labeling all lines showing the BEP 9. Calculate the degree of operating leverage at 32 units, 16 of each type 10. Calculate the cash on cash return 11. Calculate the DCR Points will be taken off if you do not do the following; Turn in question sheet; Work must be done neatly, You must show all of your work including equations, You must number all questions and circle or underline final answer except for #8 AND PUT APPLICABLE ANSWERS IN THE BLANKS PROVIDED ON THIS SHEET