A 25-year-old apartment complex is for sale for $5,000,000. Using the financials below what is NOI and asking Cap Rate?
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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?

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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.

Top Answer

Net operating income = $539,540 Cap rate =... View the full answer

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