Question

In: Finance

Part1) Bob's Apartment Building has 100 units that rent for $1,110 per month each. What is...

Part1) Bob's Apartment Building has 100 units that rent for $1,110 per month each. What is the Gross Potential Income for Bob's Apartment Building?
Part2) Bob's Apartment Building has gross potential income of $1,000,000. The expected vacancy rate is 13%. Collection losses are 5% (after allowing for vacancies). Incidental income is $50,000 per year. What is the Effective Gross Income for Bob's Apartment Building?
Part3) Bob's Apartment Building has effective gross income of $500,000. Operating expenses are 38% of revenue. What is the net operating income for Bob's Apartment Building?
Part4) Bob's Apartment Building has net operating income of $114,561. The appropriate cap rate is 5.35%. What is the value of Bob's Apartment Building? Round your answer to the nearest dollar. Don't enter the dollar sign.

Solutions

Expert Solution


Related Solutions

A company handles an apartment building with 50 units. Experience has shown that if the rent...
A company handles an apartment building with 50 units. Experience has shown that if the rent for each of the units is $800 per month, all of the units will be filled, but 1 unit will become vacant for each $20 increase in this monthly rate. If the monthly cost of maintaining the apartment building is $12 per rented unit, what rent should be charged per month to maximize the profit?
Residential Apartment Building 138 units    Apartment Breakdown       Monthly Rent        (36) Studios      ...
Residential Apartment Building 138 units    Apartment Breakdown       Monthly Rent        (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% Ordinary Income Tax Rate:   28%       Capital Improvements:   $ 213,000    Real Estate Taxes       187,000...
You rent out an apartment for 15 years, with rent starting at $500 per month and...
You rent out an apartment for 15 years, with rent starting at $500 per month and increasing 3% each year. Immediately after receiving rent payments you deposit the rent payment into an account with i(12) = .06. If there are no other deposits or withdrawals into this account then how much is in the account after the 15 year period?
37. Apartment building manager reports revenue of $1,350 per month. He was 100% occupied for the...
37. Apartment building manager reports revenue of $1,350 per month. He was 100% occupied for the year. He pays $70 per month for water & trash for the complex. His insurance was $1,050 for the year. His payment on the building were $8,400 for the year. $4,815 of it was interest. He was $50 in advertising expense for the year. Maintenance totaled for year totaled $925. He will be depreciating the property $2,320 for the year. He is also depreciating...
41. Apartment building manager reports revenue of $1,350 per month. He was 100% occupied for the...
41. Apartment building manager reports revenue of $1,350 per month. He was 100% occupied for the year. He pays $70 per month for water & trash for the complex. His insurance was $1,050 for the year. His payment on the building were $8,400 for the year. $4,815 of it was interest. He was $50 in advertising expense for the year. Maintenance totaled for year totaled $925. He will be depreciating the property $2,320 for the year. He is also depreciating...
A 100 unit apartment building is for sale. It rents for 500/unit per month. Operating expenses...
A 100 unit apartment building is for sale. It rents for 500/unit per month. Operating expenses for the building are 200,000 per year and property taxes are 10,000 a year. Lisa wants to buy it and thus needs to arrange a mortgage loan of 3,000,000 at j4 = 10% amortized over 25 years with monthly payments. The banker assessed the lending value of the property to be 4,000,000. The banker requires a minimum DCR of 1.15, (a) Does Lisa qualify...
You are considering buying an apartment complex with 50 units. The units rent for $1000 per...
You are considering buying an apartment complex with 50 units. The units rent for $1000 per month each. Usually, there is a 10% vacancy. You want a 7.5% percent total annual after-tax return on the funds you invest. You do not expect any appreciation of the property value. You also expect the property to not have any economic or real depreciation in value, since the maintenance expenses will keep the property in equal condition year after year. When fully occupied,...
Underwriting information: 200 unit apartment building 1,000 per month average rent 8% vacancy 40% total operating...
Underwriting information: 200 unit apartment building 1,000 per month average rent 8% vacancy 40% total operating expense ratio 3% growth rate Purchase price is $20 million Exit cap rate is 7.5% Unlevered discount rate is 8% Assume 5 year holding period 2. Assume the above but now with the following loan information: Loan principal of $10 million 5% interest rate 30 year term with amortization 2% loan fees Calculate levered cash flows Calculate net sales proceeds after debt repayment What...
Underwriting information: 200 unit apartment building 1,000 per month average rent 8% vacancy 38% total operating...
Underwriting information: 200 unit apartment building 1,000 per month average rent 8% vacancy 38% total operating expense ratio Replacement Reserves of $250 per unit per year 3% growth rate Purchase price is $20 million Exit cap rate is 7.5% Sales costs are 2% Unlevered discount rate is 8% Assume 5 year holding period Part 1 - Prepare 5 year pro forma operating statement What is cap rate on the purchase price? Determine the sales price at the end of year...
You have one apartment to lease, and the quoted rent is $750 per month. The lease...
You have one apartment to lease, and the quoted rent is $750 per month. The lease term is 12 months. A concession of one month’s free rent is being given in the market, and you are concerned about how this will affect property revenues if one month’s free rent is needed to seal the lease deal. What would the effective rent be for the year if no concession is granted? What would the effective rent be for the one-year term...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT