Use the following assumptions as well as the Excel Template provided to answer the following questions Assumptions: Asking Price: $249,500 Total Sq. Ft.: 2,028 Total Units: 2 Avg. Monthly Rent per Unit: $1,625 Annual Rent Growth: 3.0% Renovation Cost ($/SF): $70.00 Vacancy Allowance 6.5% of Potential Gross Rent Expense Ratio 25.0% of Effective Gross Rent Loan to Cost 80% of Total Project Cost (acquisition + renovation) Interest Rate 7.0% (paid monthly) Amortization Period 30 years Holding Period 5 years Terminal Cap Rate 7.0% (on forward 12-month NOI ie. NOI in Year 6) Sales Expense 6.0% on year five sale price

What is your total renovation cost? (round to the nearest dollar)

What is your total loan amount? (round to the nearest dollar)

Hint: Loan-to-Cost x (Asking Price + Renovation Cost)

How much equity will you need to complete this project? (round to the nearest dollar)

Hint: Total Project Cost - Loan Amount = Required Equity

What is your annual debt service? (round to the nearest dollar)

Hint: Make sure you are calculating yourannualdebt service and not yourmonthlydebt service

What is your projected Net Operating Income in year 5? (round to the nearest dollar)

What is your projected sale price in year 5? (round to the nearest dollar)

Hint: Take year 6 NOI and divide by the terminal cap rate to determine year 5 sales price

What is your loan's principal balance when you sell at the end of year five?

Hint: You can build out an amortization schedule or use the FV Function in Excel (much quicker)

Group of answer choices

$294,790

$312,115

$313,168

$315,215

What is your projectedlevered cash-on-cash return in year 4?

Group of answer choices

7.4%

7.6%

6.2%

5.1%

What is your projected unlevered IRR?

Group of answer choices

9.9%

8.8%

14.9%

12.1%

What is your levered equity multiple on this project?

Group of answer choices

1.46x

2.98x

1.49x

1.93x