Chapt14a - Year 1 2 3 4 5 6 7 8 9 10 Rent roll $10, 800...

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Garrett Barnes Chapt 14a 1,3,6 1. No, it would imply greater than 100% occupancy 3. ., b. The going in cap rate should be higher than the going out cap rate as the property is likely to wear out a little and higher risk of uncertain repair induces a higher cap rate. c. Capital improvements are not operating expenses and hence NOI remains as it is, yet the upside rent should increase with the new investment. The going out cap rate should increase if these capital improvements are successful in producing better rental growth. 6.
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Unformatted text preview: Year 1 2 3 4 5 6 7 8 9 10 Rent roll $10, 800 $11, 124 $11, 458 $11, 801 $12, 155 $12, 520 $12, 896 $13, 283 $13, 681 $14, 092 Vacancy $831 $856 $881 $908 $935 $963 $992 $1,0 22 $1,0 52 $1,0 84 Operating Expense $4,5 00 $4,6 35 $4,7 74 $4,9 17 $5,0 65 $5,2 17 $5,3 73 $5,5 34 $5,7 00 $5,8 71 NOI $5,4 69 $5,6 33 $5,8 02 $5,9 76 $6,1 56 $6,3 40 $6,5 31 $6,7 26 $6,9 28 $7,1 36 Capital improve ment $0 $0 $3,0 00 $0 $2,5 00 $0 $0 $0 $0 $0 PBTCF $5,4 69 $5,6 33 $2,8 02 $5,9 76 $3,6 56 $6,3 40 $6,5 31 $6,7 26 $6,9 28 $7,1 36...
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This note was uploaded on 09/01/2011 for the course BUSINESS 101 taught by Professor Jones during the Spring '11 term at Southern Nazarene.

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