You are investing in a 205 unit student housing compiles that you bought for $30,000,000 and plan to sell the property in 15 years, You financed 65% of the property by ABC Bank with a 15 year  fixed interest rate loan at 4.75% per year and will have to pay 2.5% in loan expenses. You have a 2 year interest only period and will have an amortization term of 20 years. You will have annual taves of $280,000 for the next 15 years and will have taxes due on sale of 4% on the property. You hope to receive a 20% unlevered return, 34% levered return on the property before taxes, and a 98% levered raturn after taxes. The apartment has 40 units with 1 bed 1 bath, 45 units with 2 bes/1 bath, 65 units with 2 bedu/2 baths, and 55 units with 4 beds/a baths. After doing your due diligence, you project the 1/1 units to rent for $1,200/room/month, the 2/1 units to rent for $850/room/month, the 2/2 units to rent for $1000/room/month and the 4/4 units to rent for $750/room/month. Each lease will be for 12 months and you project the rent to increase by 3% for the first 2 years and then stabilue to 2.5% for the remaining years. You also expect the vacancy and collection losses to be 12% in the first year and then decrease by 41% for such year until stable in year 3 at 4% for the remaining years. Your operating expenses include basic maintenance on the property totaling $10,000/month, a property management fee of $18,000/month, and a salary of $8,000/month/employee for the 8 employees on site. You also have 585,000 of other expenses and watch month and your total operating expenses grow at a rate of 2.5% yearly, You so have miscel pous income of 550/room/month for a pet fee, in which you project 20% of the room total to have pets, and $100/room/month for parking, in which you project 85% of the room total to need a parking spot. Because you noticed the apartment complex's external paint was chipping away when you inspected it, you decide to put a fresh paint on the external buildings to become more visually appealing in year 1 costing you $20,000, You also plan to add some frepits, picnic tables, and some shaded covered areas around the pool in year 2 counting you 545,000 After 15 years when you go to sell the property, you find out that comparable properties are selling at an average cap rate of 5.5% and that you will have