You are considering purchasing a Class B multifamily project in a midsized town in Central Texas and

have received the following information about the project: $($Annual Figures unless otherwise noted$)$:

Asking Price: $$9,000,000$

Number of Units $185$

Average Rent per unit: $$660$ per month

Current Vacancy $2\%$

Proforma Vacancy $7\%$

Misc Income: $2,130($estimated for full occupancy$)$

Property Taxes $149,325$

Repairs and Maintenance $106,529$

Management, Common Area Utilities, Other Expenses $300,254$

CAPEX $$250$ per unit

The property is approved for a $75\%$ LTV loan with $2$ points at $4\mathrm{.}75\%$ interest rate, with a $5$ year term on a

$25$ year amortization schedule $($balloon payment due at the end of year $5.)$ Ratio Analysis: Compute the following year one ratios for this project.

Cap Rate

Cash on Cash Return $($Equity Dividend Rate$)$

EGIM

Operating Expense Ratio

Loan to value Ratio

Debt Coverage Ratio

Breakeven Occupancy

Debt Yield Ratio