Problem #1 A first mortgage loan application is being evaluated on a 30-unit apartment property. It is 100% leased, monthly rent totals $1,100 per unit, monthly expenses and taxes total $350 per unit, and the lender deducts an annual replacement reserve of $300 per unit. a. Prepare an annual pro-forma income & expense statement and NOI, including a 6.5% vacancy and collection loss. b. The property is appraised at a 7.0% cap rate. What is the loan amount at 70% loan to value ratio? C. What is the constant mortgage payment, assuming an interest rate of 5.25% and 30 year amortization? d. What would you pay for this property to realize a 7.5% initial cap rate? e. What would be the first year return on equity, if you borrow 75% of the price in (D) on the loan terms in (C) above? f. If the landlord can increase rents $50 per month by renovating all the kitchens and bathrooms, how much can be spent on renovations to earn a 12% return on the renovation costs