Calculate the maximum debt that could be obtained for this acquisition based on loan assumptions below.

The Lender will use 5.73% capitalization rate on net operating income after capital expenditures (above line treatment) for calculating property value for loan purposes Annual Interest rate 10-year treasury bond rate yield plus a spread of 215 basis points calculated monthly Payments are made monthly 30-year amortization period 10-year term with no prepayment penalty after year four Max loan to value is 70% Minimum Debt Service Coverage ratio is 1.20 Lender mandated capital expenditure reserve of $420 per unit annually must be used in determining net operating income in lieu of actual capital expenditures. Lender-mandated vacancy/collection loss rate of five percent (5%) Loan Fees are 1.0% Acquisition Due Diligence and Closing Costs = 1.5% of acquisition price Sale valuation capitalization rate equals same rate used for acquisition Sale commission = three percent (3%) Sale Closing Costs = 1.0% of sale price.