What is the NOI based upon the following data provided? Calculate the purchase price based on 8.0 % Cap Rate. Questions to answer follow:

MAXIMUM LOAN AMOUNT $ __________________

Average Monthly Rent PSF $ _________________________

What is the cash on cash Yield BTCF / Equity _________________%

Johnson's Apartment Building (30 Units)

10 One Bedroom Units (800 sf each) Rent for $ 1200 Per Month

10 Two Bedroom Units (750 sf) Rent for $ 1600 Per Month

10 Three Bedroom Units (1500 sf) Rent for $ 2500 Per Month

Expense Data

Vacancy Rate and Credit Loss run approximately 6% per Annum

Management Fees are 6% of GOI

Utilities are paid by Tenant and are separately metered

Real Estate Taxes are $75000 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)

Formulas:

Cap Rate NOI / RATE

Financing Assumptions:

75% LTV (Loan amount / Property Value) = LTV Ratio or LTV Ration x Property Value = Loan Amount

1.2 DCR (NOI / ADS = DSCR) Interest Rate 6% Amortization 25 Years Loan Points: 1%