REFHW_8Fall2007 - Real Estate Finance Homework Assignment...

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05/11/2009 Homework #8 REFHW#8Fall2007 Real Estate Finance Homework Assignment #8 Solutions Question #1: Operating Cash Flow: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Rental Revenues  $750,000   $787,500   $826,875   $868,219   $911,630   $957,211    less:  Vacancy Allowance  (75,000)  (78,750)  (82,688)  (86,822)  (91,163)  (95,721) Effective Gross Income  $675,000   $708,750   $744,188   $781,397   $820,467   $861,490    less:  Operating Expenses  (150,000)  (154,500)  (159,135)  (163,909)  (168,826)  (173,891) Net Operating Income $525,000 $554,250 $585,053 $617,488 $651,640 $687,599 Resale Cash Flow: Year 6 NOI capped @ 9%  $7,639,988    less:  Selling expenses @ 3%  (229,200) Residual Cash Flow $7,410,789
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05/11/2009 Homework #8 REFHW#8Fall2007 Question #2: Alternative #1 - Sell Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Sale Price Today  $6,000,000    less:  Selling Expenses  (180,000)            Construction Loan Repayment  (4,500,000)
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This homework help was uploaded on 04/18/2008 for the course RE RE Finance taught by Professor Schroer during the Fall '07 term at University of Cincinnati.

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REFHW_8Fall2007 - Real Estate Finance Homework Assignment...

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