You are an employee of University Consultants and have been given the following assignment. You n new small residential income-producing property. The asking price is $2.25 million, rents are estimated year and will grow at 5% per year thereafter. Vacancy is expected to be 9% of rents. Operating expense of potential gross income (PGI). The expected holding period is 5 years and the exit cap rate is expecte going-in cap rate. a. Calculate the pro forma income statement for the property over the holding period. Your income sta Year 1 Year 2 Year 3 b. Calculate the going-in cap rate. Also, calculate the exit cap rate and the exit (sale) price. Assume the Going-in cap rate Exit cap rate Sale price