Multifamily Properties - Financial Analysis Test 1
Financial Analysis Test 1
1) Assuming a building is priced at $1.6 million and will require a new loan, calculate the cash-on-cash rate of return. __________%· The NOI is $110,000· Current interest rates are 7% for a 30-year fixed-rate, fully amortized loan, rounded to the nearest $500.· The lender requires a DCR of 1.15. 2) A building has ten units, five of which are 2+1’s rented at $1,000. The others are 1+1’s, four of which are rented at $875, the remaining 1+1 is vacant. The market rent for the 2+1’s is $1,050; the market rent for the 1+1’s is $925. There is “Other Income” of $1,500 per year. What is the Annual Gross Scheduled Rent? What is the Annual Gross Potential Rent? What is the Annual Gross Potential Income? GSR = $________________ GPR = $________________ GPI = $________________ 3) Calculate the NOI. $____________________· The Gross Potential Rent is $125,000· The Other Income is $1,500· The current vacancy is 6%· Expenses are $49,000 4) Calculate the CAP rate. ______________%· The Gross Potential Rent is $165,000· The Other Income is $2,250· The current vacancy is 5%· Expenses are $44,000· Price = $1,600,000 5) Calculate the GRM. _________X· The Gross Potential Rent is $118,750· The Other Income is $3,000· The current vacancy is 8%· Expenses are $47,500· Price = $1,425,000