You are considering buying an apartment building and plan a renovation. You know the following: 200 units $1,300,000 current NOI $900 average rent per month $360 average expense per unit per month 5% current vacancy rate (a.)What is the projected NOI after the renovation and how much could you spend on the renovation? Assume: 11% return requirement after the renovation $1,200 rent per unit per month in better-managed, renovated properties. 5% market vacancy 8.75% cap rate for purchase (b.) How much will you need to increase the current rents to justify a renovation? Assume: $10,000 per unit budgeted renovation costs (c.) If you refinance the property after the renovation, how much can you borrow? Assume the $1,200 per month rent scenario (a.) and: 8% interest rate 25 year amortization 9.26% Loan constant 1.3 Debt Service Coverage Ratio (d.) What is the loan amount based on the following appraisal results? Assume the $1,200 per month rent scenario and: 9% Cap rate 75% Loan to value ratio