Assumptions (Base Case for Single Asset)				Full-Year Operating Statement
# of Units in Asset	100			Revenue
Average Rent per Unit	$2,000	per month			Gross Revenue
Vacancy Loss	5.0%	of gross revenue			less Vacancy Loss
Other Income - Rooftop Antenna	$1,500	per month			plus Other Income
Operating Expense Summary:					Total
Recurring Repairs	$750	per unit		Expenses
Management Fee	4.0%	of gross revenue			Repairs
Real Estate Taxes	5.0%	of net revenue			Management Fee
Insurance	2.5%	of net revenue			Real Estate Taxes
Utilities	$100,000				Insurance
Debt Service Coverage Ratio	1.20x				Utilities
Capital Improvements	$1,500	per unit			Total
Net Cash Flow (NCF) Waterfall:
Retained by Asset for Operations	20.0%			Net Operating Income (NOI)
Available for Partner Distributions*	80.0%			less Annual Debt Service
Appraised Gross Asset Value	$35,000,000			less Capital Improvements
Asset Ownership Structure:				Net Cash Flow (NCF)
General Partner (GP)	10.0%
Limited Partner (LP)	90.0%
				Net Cash Flow Waterfall
* LP entitled to the first $100,000 of annual distributable NCF.
Thereafter, GP and LP receive pro rata share of distributable NCF.			Scenario #1	Base Case
				Net Cash Flow (NCF)
				* NCF retained by asset
				* NCF distributed to LP
Homework assignment				* NCF distributed to GP
Please fill in the yellow cells on the right
			Scenario #2	What if capital improvements = $1,000 per unit?
				Net Cash Flow (NCF)
				* NCF retained by asset
				* NCF distributed to LP
				* NCF distributed to GP
			Scenario #3	What if capital improvements = $2,000 per unit?
				Net Cash Flow (NCF)
				* NCF retained by asset
				* NCF distributed to LP
				* NCF distributed to GP
				Other Questions
			What is the maximum per-unit capital improvement amount
			for the GP to earn at least $1,000 in the waterfall?
			Based on calculated NOI, what is the asset's current cap rate?