TASK: Find a multi$-$family $(8$ or more units$)$ property online currently for sale located in Texas.$$ Any number of units and price is okay as long as it is multi$-$family and $8$ units or more.

PLEASE WORK ON THIS PROPERTY:

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

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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$2$

Lot Size: $6,569$ sq ft

Broker Co$-$Op: Yes

Question $1$ Buyer$$s Perspective $-$ Answer to be placed on Page $1$ answer sheet $-$ You are the investor and are analyzing the purchase of the property you found online.$$ Find or calculate the expected NOIs for your subject property.$$ Use the Ch $10$ reading and Ch $10$ excel to calculate the most you should pay for the property.$$

Part A$)$ Paste $($screenshot$)$ of your Ch $10$ excel calculations of the Future NOI, PV$,$ Sum of cash flows, reversion and total $($should be cells A$7$ through C$22).$HERE IS THE Ch $10$ excel: Discount Rate

$10\mathrm{.}00\%$

CAP Rate

$8\mathrm{.}00\%$

Growth Rate

$2\mathrm{.}00\%$

Holding Period $($max $9,$ need next year NOI$)$

$9$

Purchase Price

$$0\mathrm{.}00$

Annuity $($PMT$)$

$0$

End$(0)$ or beg $(1)$

$0$

Year

Future NOI

Present Value

Year $1$

$1$

$$

$$0\mathrm{.}00$

PGI

$2$

$$

$$0\mathrm{.}00$

VC

$3$

$$

$$0\mathrm{.}00$

EGI

$4$

$$

$$0\mathrm{.}00$

OPEX

$5$

$$

$$0\mathrm{.}00$

NOI

$6$

$$

$$0\mathrm{.}00$

$7$

$$

$$0\mathrm{.}00$

$8$

$$

$$0\mathrm{.}00$

$9$

$$

$$0\mathrm{.}00$

$10$

$$

$$0\mathrm{.}00$

Sum of Cash Flows $($for holding period$)$

$$0\mathrm{.}00$

$$0\mathrm{.}00$

Reversion $($Sales price after holding$)$

$$0\mathrm{.}00$

$$0\mathrm{.}00$

Total $($PV is the max you should pay$)$

$$0\mathrm{.}00$

$$0\mathrm{.}00$

Part B$)$ List $2$ specific and real differences between the purchase assumptions for Part A and the property you found.$$ Don$$t make this up$,$ research your property and area.$$ Do not put general answers that could apply to any property.

Part C$)$ Modify your calculation with your $2$ specific and real differences and explain how it impacts what you are willing to pay.

PURCHASE ASSUMPTIONS for Part A

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

$2)1$st year Total Annual Rent $=10\%$ of Sales Price

$3)$ Long$-$run Rent Growth $=2\%$ Annual

$4)$ Vacancy and Collection losses $=$ $$0$

$5)$ Operating Expenses $=35\%$ of Total Annual Rent

$6)$ Your Required Rate of Return $=14\%$

$7)$ Holding Period $=9$ years

PLEASE USE THIS EXCEL SHEET AND SHOW THE EXCEL CALCULATION FOR ME: