Thank you!

1. Use the information provided below to calculate the year 2 net operating income for the property described: Property type: Apartment Number of units: 50 Average rent: $800 per unit per month Expected annual rent growth: 3% Other income: $10 per unit per month Expected annual growth in other income: 3% Vacancy and collection losses: 5% of potential gross income Operating expenses: 45% of effective gross income Capital expenditures: 3% of effective gross income Selling expenses: 5% of future selling price Discount rate: 12% Going-in cap rate: 6% Going-out cap rate: 6.25% 0 $240,240 0 $261,723 0 $247,447 0 $254,100