Question: #4) A 30-year-old 100 unit apartment complex in a transitional neighborhood is for sale in Atlanta for $10,000,000. Using the numbers below what is the

#4) A 30-year-old 100 unit apartment complex in a transitional neighborhood is for sale in Atlanta for $10,000,000. Using the numbers below what is the Gross Possible Income, Effective Gross, NOI, and Cash Flow. What is the Asking Cap Rate, Return on Equity, and Price Per Unit? If you want at least a 5% return on your investment how much would you pay for the complex? Is this a good deal for you? Show all your math in detail:

Basic Financial Information:

100 units (#75-2-bed/ 1 Bath and #25-1 Bed/ 1 bath).

Average Rent: $1,100/mt for 2 beds; $850/ mt. for the 1 bed:

Vacancy/ Credit Loss 10%

Expenses - $5,000/ unit/ year

Other Income - $4,000.

Equity (30%) $3,000,000.

Loan (70%) - $7,000,000 @ 5%, Interest Only with 5-year balloon

Debt Service - $350,000. / yr.

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