You are considering purchasing a small storage facility for $2,080,000.

Your expectations include:

First-year gross potential income of $400,000;

Vacancy & collection losses equal to 15% of PGI;

Operating expenses = 35% of EGI;

Capital expenditures = 2% of EGI (assume "above-line" treatment)

60% LTV mortgage @ 6.75%

The mortgage will be amortized over 25 years with monthly payments and mature in 7 years;

Total up-front financing costs = 2.5% of the loan amount

Based on the information above, calculate the following ratios:

A. Going-in cap rate

B. EDR

C. EGIM

D. OER

E. DCR

F. DYR

Using Excel