Question $2$ Seller$$s Perspective $-$ Answer to be placed on page $2$ answer sheet $-$ The Seller of the property is having second thoughts about selling even though the Seller got a good deal $5$ years ago.$$ The full straight$-$line depreciation allowance has been taken every year.$$ Use the Ch $11$ excel $($you might have to modify$)$ to calculate the ATCF from the sale.$$ You are using this sheet to look at what the Seller has actually made the last $5$ years. HERE IS THE PROPERTY DESCRIPTION:

PLEASE WORK ON THIS PROPERTY:

$3915$ Roseland Ave, Dallas, TX $75204$

Show on Map

Date Added:

November $13,2024$

Days on Market:

$138$ days

Time Since Last Update:

$36$ days

Details:

Property Type: Multifamily

Subtype: Apartment Building

Investment Type: Core$+$

Class: A

Square Footage: $6,368$

Occupancy: $100\%$

Pro$-$Forma NOI: $$123,124$

Units: $8$

Year Built: $2024$

Buildings: $1$

Stories: $4$

Zoning: MF$2$

Part A$)$ Paste $($screenshot$)$ of your excel calculations of the complete After$-$tax cash flow from sale in year $5$ with ATCF and ATIRR $($probably A$71$ through C$78).$EXCEL SHEET IS:

CASH FLOW SUMMARY

BTIRR on Equity

Year

$0$

Before$-$Tax Cash Flow

$$0$

After$-$Tax Cash Flow

$$0$

Before$-$Tax IRR $($BTIRR$)$

#VALUE!

After$-$Tax IRR $($ATIRR$)$

#VALUE!

Effective Tax Rate

#VALUE!

Part B$)$ List $2$ of the selling assumptions that might be different in real life compared to the assumptions for your found property.$$

Part C$)$ Explain for each one, how that difference impacts your calculation of ATCF and in turn the Seller$$s decision making.

$$

SELLING ASSUMPTIONS for Part A

$1)$ Sales Price today $=$ Listed Price online

$2)$ Purchase Price $5$ years ago $=50\%$ of Sales Price today

$3)1$st year Total Annual Rent $=10\%$ of $5$ years ago Purchase Price

$4)$ Rent Growth $=1\%$

$5)$ Vacancy $=10\%$

$6)$ Operating Expenses $=45\%$

$7)$ Annual Appreciation the past $5$ years for the multi$-$family market $-2\%$

$8)$ Original Purchase Price $=$ Original Cost Basis

$9)$ Building $\%$ of Total Deal $=85\%$

$10)$ Original Loan $=30-$year, $70\%$ LTV @ $4\%$

$11)$ Equity Discount Rate $=8\%$

$12)$ Reinvestment Rate $=8\%$

$13)$ Selling Costs $=7\%$

$14)$ Capital Gains Tax Rate $=15\%$

$15)$ Income Tax Bracket $=35\%$

$16)$ Depreciation Recapture Rate $=25\%$

PLEASE USE THE BELOW$-$PROVIDED EXCEL SHEET $($probably A$71$ through C$78)$ AND WRITE DETAILS ON HOW TO DO THAT CALCULATION ON MY EXCEL SHEET.