What is the projected sales price of property

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Reference no: EM133057618

Using the worksheet on the below conduct a Before Tax/ No Financing Analysis  for a 100 unit property and answer the following questions given the following information:

Sales Price should  be calculated using year 6 Net operating Income Capped

Cost of Sale is 5%

Question 1 Has four parts which is the questions below

Part A. What is the projected Sales Price of this Property?

Part B.  What is the cost of sale?

Part C.  What is the sales proceeds before tax?

Part D. What is the internal rate of return for this deal?

Year 

2         

Potential Rental Income 

1,080,000 

1,112,400 

1,145,772 

1,180,145.16 

1,215,549.51 

1,252,016 

Vacancy 

54,000 

55,620 

57,288.6 

59,007.26 

60,777.48 

62,600.8 

Effective Gross Rent 

1,027,600 

1,058,412 

1,090,148 

1,122,835.83 

1,156,503.93 

1,191,181.73 

Laundry Income (Other Income) 

1,600 

1,632 

1664.64 

1697.93 

1,731.89 

1,766.52 

Collected Income 

1,027,600 

1,058,412

1,090,148

1,122,835.83

1,156,503.93

1,191,181.73 

Operating Expenses 

452,144 

465,701.3 

479,665.1 

494,047.8 

508,861.7 

524,119.96

Net Operating Income

575,456

592,710.7

610,482.9

628,788.03

647,642.23

667,061.77

Reference no: EM133057618

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