Question

Given the following information provide an analysis that answers the questions at the end of the assignment.

Purchase Price: $4,250,000

Rents:

Tenant	Unit 1	Unit 2	Unit 3	Unit 4	Unit 5	Unit 6	Unit 7	Unit 8
Monthly Rent	$5,400	$5,400	$6,200	$3,500	$3,600	$3,300	$3,700	$3,100

Year 1 NOI: $248,678

NOI Growth Rate: 2.6%

Loan:

            LTV: 75%

            Amortization Period: 25 years, Term: 10 years

            Interest Rate: 3.35%

            Lender Points: 2%

Selling Costs: 3%

Going Out Cap Rate: 5.5%

Discount Rate: 10%

Questions:

1. What is the going in cap rate?
2. What is year 1 PGI?

Can you teach me how to do this on excel?

Answer 1

L! Home Insert Page Layout Formulas Data Review View Acrobat * Cut Ea Copy Calibri 11 A A Wrap Text Pe Paste BI U DO Format Painter ra Merge & Center Alignment Clipboard Font SUM xf =C5/C4 A B C С D E F 1 2 Going in Cap Rate 3 4 Purchase Price: Net Operating Income: $4,250,000.00 $248,678.00 5 6 7 8 9 Formula 10 11 12 Cap Rate = NOT Value 13 14 15 Zilculator 16 17 18 19 Calculation Going-In Cap Rate =C5/04 20 Gross Scheduled Income E he Insert Page Layout Formulas Data Review View Acrobat Calibri - 11 AA Wrap Text General Norma ut opy ormat Painter ard B I U - - * Merge & Center $ - % .00 .00.0 Conditional Format Formatting as Table Check Font Alignment Number fic B C D E F G H 1 PGI The Aggregate Monthly rent of all unit $ 34,200. It is assumed that the property is rented for 8Months hence vacated for 4months Since Monthly loss of rent is $ 34,200 and for 4month it will be $ 136800 Formula is effective gross income minus TOTAL INCOME Here gross income is C10*12-E10 Monthly $ 34,200.00 Holding period Real Earning PGI 273600 $ 136,800.00 Unit 1: 8