The information below outlines each of the investments that Mark is analyzing:

Property $1$ Property $2$ Property $3$ Property $4$A Property $4$B

Property Type Residential Commercial Mixed Use Residential Residential

Purchase Price $$400,000$ $$500,000$ $$475,000$ $$535,000$ $$535,000$

Overhaul Cost n$/$a n$/$a n$/$a n$/$a $$200,000$

Est. Value After $5$ Years $$425,000$ $$645,000$ $$550,000$ $$625,000$ $$850,000$

Rental Revenue $$35,000$ per year, paid monthly, indexed at $2\mathrm{.}5\%$ $$75,000$ per year, paid quarterly $($starting in March$),$ indexed at $3\%$ $$45,000$ per year, paid quarterly $($starting in January$),$ indexed at $2\%$ $$60,000$ per year, paid monthly, not indexed Before overhaul is same as $4$A; After overhaul is $$75,000$ per year paid monthly, not indexed

General Operating Costs $12\%$ of revenue $$5,500$ per year, paid monthly, indexed at $3\%$ $$3,500$ in April, $$5,000$ in October, indexed at $2\%$ $$5,000$ per year, paid monthly, indexed at $1\%$ Up to overhaul is same as $4$A; after overhaul is $8\%$ of revenues

Note: "Indexed at$"$ means that the amounts will increase at this percentage year over year.

For property $4,$ the company has the option of overhauling the property. Details of the property without overhaul are listed under property $4$a and details of the property with overhaul are listed under property $4$b$.$ The overhaul cost should not be considered in the purchase price constraint, but would be considered in the pro forma cash flow statement. It is NOT possible to invest in both property $4$a and property $4$b$.$

for this week's case analysis, outline a market analysis for the property outlined in the Week $4$ Case Study. Based on the information presented in this case, complete the following:

Provide a summary of the choices faced by Mark.

Create pro forma cash flow statements for each investment opportunity for the next $5$ years based on the information provided.

The general operating costs included in this breakdown are provided as a total for all costs. What do you assume that these operating cost classifications may be for each property type? Is there a difference between the residential and commercial property types?

Based on this information presented and your created pro forma cash flow statements, make a recommendation on which property$($s$)$ Mark should select. Support your recommendation using financial information and market data.

If you were making this decision, what additional information would you want access to for your decision?

Provide a conclusion to your paper.