Question: question # 2 please 1. Use the grid below to estimate the annual Net Operating Income for the first and second year of a building

question # 2 please

1. Use the grid below to estimate the annual Net Operating Income for the first and second year of a building with 10 apartments that are currently rented for $825/mo each given the following assumptions: Capital Expenditures (CAPX) equal to 15% of EGI Potential Gross Income (PGI) increases at 5% per year Anticipated Vacancy & Collection Losses of 10% of PGI Operating Expenses (OE) equal to $18,780 and $18,910 during 1st and 2nd year 1st Year 2nd Year PGI VC EGI OE CAPX NOI = 2. What is the estimated market value of the same building described above utilizing the direct capitalization method if the cap rate for apartments of similar quality is 7%? Use 2nd year NOI solved for above

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