A 25-year-old apartment complex is for sale for $5,000,000. Using the financials below what is NOI and asking Cap
Rate? If you want at least a 10% return on your investment how much would you pay for the complex?
Show your work.
Basic Financial Information:
100 units Built - 1994
Average Rent - $950/ unit/ mt. Taxes - $105,000/ yr.
Insurance - $25,000/ yr General & Admin - $40,000
Amortization - $3,000/ yr. Management - 5% of AGI
Vacancy - 7% Landscape -$30,000/ yr.
Maintenance - $120,000/ yr. Depreciation - $60,000
Pest Control - $4,000/ yr. Other Income - $5,000/yr.
Payroll - $125,000 Utilities - $18,000/ yr.