Residential Apartment Building

138 units

Apartment Breakdown Monthly Rent

(36) Studios $ 750.00

(48) 1 Bedrooms 1,500.00

(42) 2 Bedrooms 2,200.00

(12) 3 Bedrooms 2,700.00

Closing Costs: 2.5% of Purchase Price

Vacancy: 3% of Gross Potential Rent

Loan Constant: 6.5% (Based on a 30 year amortization)

Ordinary Income Tax Rate: 28%

Capital Improvements: $ 213,000

Real Estate Taxes 187,000

Insurance 73,000

Annual Debt Service 1,337,213

Payroll and Payroll Taxes 185,000

Union Benefits 37,500

Utilities 78,000

Repairs 150,000

Supplies 30,000

Legal and Accounting 25,000

9. If the property had originally been purchased at a capitalization rate of 6% versus 7%, what would the difference in the purchase price be?

10. What are the closing costs?

11. What is the Mortgage amount?

12. How much equity is invested in the property?