Summit Apartment Complex

		Year 1	Year 2	Year 3
Potential Gross Income		200,000	206,000	212,180
Vacancy & Collection Loss		(10,000)	(10,300)	(10,609)
Effective Gross Income		190,000	195,700	201,571
Total Operating Expenses		(66,500)	(68,495)	(70,550)
Net Operating Income		123,500	127,205	131,021

ASSUMING: An investor purchased the above property for $1,300,000 by securing a loan based on a 75% loan to value (LTV). After three years, the owner sold the property for $1,600,000 and paid off the balance of the note. The required rate of return (unleveraged and leveraged) for the investor is 15%. The loan was a 25 year amortized loan with monthly payments based on a 6% interest rate.

What is the debt coverage ratio for year 1?

What is the operating expense ratio for year 1?

What is the leveraged Net Preset Value for this property?

What is the "going-in" capitalization rate for this property?

What is the balloon payment at the end of year 3?

What is the unleveraged Net Preset Value for this property?

What is the unleveraged Internal Rate of Return (IRR) for this property?

What is the mortgage constant (annual)?