The APOD (Annual Property Operating Data) worksheet is used to calculate the initial year assumptions. The figures are then transferred to the CFAW (Cash Flow Analysis Worksheet) Year One. The assumptions on an APOD can help an investor make quick decisions by using the GRM ratio and CAP Rate calculations.

Purchase Price: $1,400,000; 25 Rental Units; Monthly Rental Rate - $725 per unit; NOI - $123,404

What is the GRM and the CAP Rate?

	1.	GRM = 6.44 CAP Rate = 8.81%
	2.	GRM = 6.44 CAP Rate = 5.88%
	3.	GRM = 1.55 CAP Rate = 5.88%
	4.	GRM = 6.44 CAP Rate = 11.34%