What is the NOI based upon the following data provided? Calculate the purchase price based on 6.5 % Cap Rate. Questions to answer follow:

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

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%