#$6)$ A $10-$year$-$old, $40,000$ SF office building in Kennesaw is for sale for $$4,000,000.$

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Using the numbers below what is the Gross Possible Income, Adjusted Gross Income, Net Operatiing Income, and Cash Flow.

What is the Asking Cap Rate $($ROR$)($NOI$/$Sales Price$),$ Return on Equity $($Cash flow$/$ Equity$),$ Debt Coverage Ratio $($NOI$/$Debt Service$),$ and Asking Price Per SF $(?$

If you want at least an $8\%$ 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:

Income $-40,000$ SQ FT leased at $$20/$SF$/$ YR

Taxes $$ $$55,000/$ yr$.$

Repair & Maintenance $$ $$60,000/$ yr$.$

Legal $-$ $$10,000/$ yr$.$

Amortization $-$ $$7,500/$ yr$.($not in Adjusted Gross Income$)$

Insurance $-$ $$6,500/$ yr$.$

Utilities $$ $$75,000/$ yr$.$

Management $$ $$35,000/$ yr$.$

Capital Expenses $-$ $$25,000\mathrm{.}00$

Vacancy$/$ Credit Loss $20\%$

Depreciation $-$ $$18,000/$ yr$.($not in Adjusted Gross Income$)$

Other Income $-$ $$4,000.$

Utilities $-$ $$75,000/$ yr$.$

Equity $(25\%)$ $$1,000,000.$

Loan $(75\%)-$ $$3,000,000$ @ $6\%,$ Interest Only with $5-$year balloon

Debt Service $-$ $$180,000./$ yr$.$