See data below to answer: (Points are in parenthesis)

a. Net Operating Income (5)

b. Estimated Market Value (5)

c. Annual Payment (5)

d. Before Tax Cash Flow (5)

e. Debt Coverage Ratio (5)

Use the following data:

3 units at $500/Month, and 3 units at $700/Month

Depreciation $7K

Tax Rate 30%

Vacancy Rate 7%

Maintenance/Property Taxes/Utilities/Insurance = 13K

Cap Rate = 9%

Sales Price is 90% of Your Estimate of Market Value

20% Down Payment

Loan at 6% for 30 years. Use Annual Payment, NOT Monthly.

Annual Interest = $13K