Reference no: EM132966760
Question - Apartment Breakdown Monthly Rent
Residential Apartment Building138 units
(36) Studios $ 750.00
(48) 1 Bedrooms 1,500.00
(42) 2 Bedrooms 2,200.00
(12) 3 Bedrooms 2,700.00
Closing Costs: 2.5% of Purchase Price
Vacancy: 3% of Gross Potential Rent
Loan Constant: 6.5% (Based on a 30-year amortization)
Ordinary Income Tax Rate: 28%
Capital Improvements: $ 213,000
Real Estate Taxes 187,000
Insurance 73,000
Annual Debt Service 1,337,213
Payroll and Payroll Taxes 185,000
Union Benefits 37,500
Utilities 78,000
Repairs 150,000
Supplies 30,000
Legal and Accounting 25,000
Required -
1. What is the Mortgage amount?
2. How much equity is invested in the property?
3. What is the LTV?
4. What is the cash-on-cash return (after debt service) on this investment?
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