Question
THE PROBLEM What is the NOI based upon the following data provided? Calculate the purchase price based on 6.5 % Cap Rate. Questions to answer
THE PROBLEM What is the NOI based upon the following data provided? Calculate the purchase price based on 6.5 % Cap Rate.
Questions to answer follow: NOI $ ____________________________________
SALES PRICE $ ___________________________
MAXIMUM LOAN AMOUNT $ __________________
Average Monthly Rent PSF $ _________________________
Before Tax Cash Flow Year 1 $________________________
What is the cash on cash Yield BTCF / Equity _________________%
NO NAME Apartment Building (25 Units)
10 One Bedroom Units (650 sf each) Rent for $ 1170 Per Month
10 Two Bedroom Units (950 sf) Rent for $ 1520
Per Month 5 Three Bedroom Units (1300 sf) Rent for $ 1950 Per Month
Expense Data
Vacancy Rate and Credit Loss run approximately 5% per Annum
Management Fees are 5% of GOI
Utilities are paid by Tenant and are separately metered
Real Estate Taxes are $ 95,000 per year
Common Area Maintenance is $ .50 PSF Per Annum
Accounting and Legal are $ 4000 per annum.
Marketing $ 150 Per Month
Insurance is $ .35 PSF Per Annum
Capital Reserves are $ .15 PSF per Year
Show your work using the standard format for the real estate operating statement (APOD)
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