please help asap! this is for an excel hw due tonight. i must provide a...
50.1K
Verified Solution
Question
Accounting
please help asap! this is for an excel hw due tonight. i must provide a fundamental cash flow analysis for a property in excel that helps me answer these questions.
Part A-Unlevered 930 Bridgeport Avenue is a two-story, three-unit building in a desirable urban neighborhood near a large university campus that you are entertaining purchasing and holding as a long-term investment. It is currently listed for $235,000 or $78,333 per unit. The first floor contains a 2BR/18A unit rented for $950 per month. The second floor contains two 18R/18BA units. The front unit has a private balcony and is rented for $750 per month, and the other unit is rented for $700 per month. The seller's representative provided you with historical income data suggesting that the seller has collected about $35 per month from each tenant in the form of late fees, pet fees, and laundry income. The property also has a detached garage accessible from the alley that one of the tenants currently rents for an additional $30 per month. A local property manager you met at the wedding of a mutual friend who manages several buildings in this neighborhood told you that the rentals rates at the building appear reasonable and that facancy rates have historically hovered around 5.00% with some seasonable variability around the beginning and end of the fall semester. Historically, rents have increased by about 5% per year, while other income tends to remain flat, increasing maybe 1% per year. As a back-of-the-envelope measure, operating expenses in this market typically run at about 35% of effective gross income. \begin{tabular}{|c|c|} \hline Part A - Questions & Part A-Answers \\ \hline What is the EGI in year 1 ? & $30,420 \\ \hline What effective gross income multiplier does this imply based on the list price for the property? & \\ \hline What is the NOI in year 1 ? & 519,773 \\ \hline What cap rate does that imply based on the list price for the property? & \\ \hline What is the gross income multiplier implied by the list price? & \\ \hline \begin{tabular}{l} Assuming you hold this investment for five years and you anticipate you can sell the property at a \\ capitalization rate of 8.00% based on pro-forma income, how much do you expect to sell the property \end{tabular} & \\ \hline \begin{tabular}{l} for? \\ If closing costs are typically about 5% of the sale price for a seller, what are your expected net ffoceeds \end{tabular} & \\ \hline from the sale at the end of year five? & \\ \hline \begin{tabular}{l} If your investment criteria dictate that the property needs to generate a target yield of 11.00% per year, \\ what is the maximum you could pay for this property while still meeting that objective? \end{tabular} & \\ \hline Would you purchase this property at its current list price? & \\ \hline \begin{tabular}{l} What is your projected internal rate of return (IRR), assuming you purchase the property for its list: \\ price? \end{tabular} & \\ \hline \end{tabular} Part A-Unlevered 930 Bridgeport Avenue is a two-story, three-unit building in a desirable urban neighborhood near a large university campus that you are entertaining purchasing and holding as a long-term investment. It is currently listed for $235,000 or $78,333 per unit. The first floor contains a 2BR/18A unit rented for $950 per month. The second floor contains two 18R/18BA units. The front unit has a private balcony and is rented for $750 per month, and the other unit is rented for $700 per month. The seller's representative provided you with historical income data suggesting that the seller has collected about $35 per month from each tenant in the form of late fees, pet fees, and laundry income. The property also has a detached garage accessible from the alley that one of the tenants currently rents for an additional $30 per month. A local property manager you met at the wedding of a mutual friend who manages several buildings in this neighborhood told you that the rentals rates at the building appear reasonable and that facancy rates have historically hovered around 5.00% with some seasonable variability around the beginning and end of the fall semester. Historically, rents have increased by about 5% per year, while other income tends to remain flat, increasing maybe 1% per year. As a back-of-the-envelope measure, operating expenses in this market typically run at about 35% of effective gross income. \begin{tabular}{|c|c|} \hline Part A - Questions & Part A-Answers \\ \hline What is the EGI in year 1 ? & $30,420 \\ \hline What effective gross income multiplier does this imply based on the list price for the property? & \\ \hline What is the NOI in year 1 ? & 519,773 \\ \hline What cap rate does that imply based on the list price for the property? & \\ \hline What is the gross income multiplier implied by the list price? & \\ \hline \begin{tabular}{l} Assuming you hold this investment for five years and you anticipate you can sell the property at a \\ capitalization rate of 8.00% based on pro-forma income, how much do you expect to sell the property \end{tabular} & \\ \hline \begin{tabular}{l} for? \\ If closing costs are typically about 5% of the sale price for a seller, what are your expected net ffoceeds \end{tabular} & \\ \hline from the sale at the end of year five? & \\ \hline \begin{tabular}{l} If your investment criteria dictate that the property needs to generate a target yield of 11.00% per year, \\ what is the maximum you could pay for this property while still meeting that objective? \end{tabular} & \\ \hline Would you purchase this property at its current list price? & \\ \hline \begin{tabular}{l} What is your projected internal rate of return (IRR), assuming you purchase the property for its list: \\ price? \end{tabular} & \\ \hline \end{tabular}
please help asap! this is for an excel hw due tonight. i must provide a fundamental cash flow analysis for a property in excel that helps me answer these questions.


Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.