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%

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

5. What is the Vacancy Allowance?

6. What are the Operating Expenses?

7. What is the Net Operating Income?

8. What is the Net Income?