Fill in the blanks and create a 10 year proforma spreadsheet similar to what is found on pages 303 -305 in your book. Write a 3 to 5 page summary stating what you did to fill in the blanks of the Proforma and what were the results as to If this is a good deal.

Ten year Project 120 unit Apartment Complex

Purchase Price: $3,056,600

Holding Period: 10 Years

Depreciation in years: 30

Land Value % of Price: 25%

Loan to Value: 70%

Term of Loan: 20 years

Points to close: 2%

Interest Rate: 6.5%

Prepayment Penalty 1% of the loan before 15 years

Investor Tax Rate 34%

Growth rate in rents: 4.5%

Vacancy Rate: 13%

Cap rate for resale: 12% Going out Cap rate

Selling Costs: 7% of selling price

Capital gain s Tax Rate: 15%

Target Equity IRR after Tax: 12%

(Remember if on lease other than month to month cannot increase rent until lease is up. Assume lease term ends at period (ie. 1 Year leases end in 1 year and 2 year in 2 years. Also assume similar rotation for each year). Property Valuation: Assume Property increases in value at rate if inflation. (Remember if on lease other than month to month cannot increase rent until lease is up. Assume lease term ends at period (ie. 1 Year leases end in 1 year and 2 year in 2 years. Also assume similar rotation for each year). Property Valuation: Assume Property increases in value at rate if inflation