You are getting ready to buy a 25-year-old apartment complex –If you want a 7% return on your investment what would you pay forthe complex? Using the financials below what is the Gross PotentialIncome, Adjusted Gross Income, Total Expenses, NOI, Cash Flow, Loanto Value, and Debt Coverage Ratio. Answer all the same questionsexcept you must have a 10% return? Show your work.

You are getting ready to buy a 25-year-old apartment complex –If you want a 7% return on your investment what would you pay forthe complex? Using the financials below what is the Gross PotentialIncome, Adjusted Gross Income, Total Expenses, NOI, Cash Flow, Loanto Value, and Debt Coverage Ratio. Answer all the same questionsexcept you must have a 10% return? Show your work.

You are getting ready to buy a 25-year-old apartment complex –If you want a 7% return on your investment what would you pay forthe complex? Using the financials below what is the Gross PotentialIncome, Adjusted Gross Income, Total Expenses, NOI, Cash Flow, Loanto Value, and Debt Coverage Ratio. Answer all the same questionsexcept you must have a 10% return? Show your work.

Basic Information:

100 units Built - 1994

Average Rent - $950/ unit/ mt. Taxes - $95,000/ yr.

Insurance - $25,000/ yr Debt Service – $35,000

Amortization – $3,000/ yr. Management – 5% of AGI

Vacancy – 7% Landscape –$30,000/ yr.

Maintenance – $120,000/ yr. Depreciation - $60,000

Pest Control - $4,000/ yr. Other Income - $5,000/yr.

Payroll - $125,000 Utilities - $18,000/ yr.

General & Admin - $40,000

Loan: $4,000,000 @ 6% – interest only for 5 years ($240,000annual payment