Question 71 (1 point) The cash flows below provide the expected year 1 cash flows for a potential real estate investment. Based on these numbers what will the property's capitalization rate be if you expect to purchase the property for $1.3 million using a loan for 70% of the purchase price? Year 1 Number of Units Average Rent Potential Gross Income 100 $1,500 $150,000 ($10.500) $139,500 ($53,010) Vacancy and Collection Losses Effective Gross Income Operating Expenses Capital Expenditures Net Operating Income ($5.580) $80.910 ($73,842) Annual Debt Service Before-Tax Cash Flow $7,068 5.60%