Your client is interested in purchasing for all cash, Garden Park Apartments, a 100-unit apartment complex in Milford, CT. There are 50 one-bedroom units and 50 two-bedroom units. 47 one-bedroom units are currently rented at $1,500 per month and 45 two-bedroom units at $2,100 per month. Market rent for one -bedroom units is $1,700 per month and two-bedrooms rents are $2,500 per month. All rents are plus utilities. Market vacancy rate is about 4.5%. The property generates laundry income of $20.per month per occupied unit. Operating Expenses are: RE Taxes $2,500 per unit per year, personal property tax is a total of $3,100 per year. Property insurance is $145.00 per unit. Property Management is 5% of Gross operating income. Payroll is $50,000 per year; Expense benefits are $12,000 and payroll taxes are 30% of payroll. Repairs and Maintenance is $175 per unit per year. Water is $1,200 quarterly, sewer tax is $800 semi-annually, common area electric is $750 per month, Common area Gas Heat is $560 per month October to April and $150 May to September. Legal fees and accounting run about $5,500 per year The elevator permit is $450. Advertising runs about $3,100 per year. Supplies run about $50 per unit per year. Snow removal averages about $20,000 per year, Ground care runs about $75,000 per year. Elevator Contract is $2,500 per quarter. What is the NOI in year one and year of sale? Do APOD, NO Cash flow Analysis form or Cash Sale Work sheet
Your client is interested in purchasing for all cash, Garden Park Apartments, a 100-unit apartment complex in Milford, CT. There are 50 one-bedroom units and 50 two-bedroom units. 47 one-bedroom units are currently rented at $1,500 per month and 45 two-bedroom units at $2,100 per
month. Market rent for one -bedroom units is $1,700 per month and two-bedrooms rents are $2,500 per month. All rents are plus utilities.
Market vacancy rate is about 4.5%. The property generates laundry income of $20.per month per occupied unit.
Operating Expenses are:
RE Taxes $2,500 per unit per year, personal property tax is a total of $3,100 per year.
Property insurance is $145.00 per unit.
Property Management is 5% of Gross operating income.
Payroll is $50,000 per year; Expense benefits are $12,000 and payroll taxes are 30% of payroll.
Repairs and Maintenance is $175 per unit per year.
Water is $1,200 quarterly, sewer tax is $800 semi-annually, common area electric is $750 per month, Common area Gas Heat is $560 per month October to April and $150 May to September.
Legal fees and accounting run about $5,500 per year
The elevator permit is $450.
Advertising runs about $3,100 per year.
Supplies run about $50 per unit per year.
Snow removal averages about $20,000 per year, Ground care runs about $75,000 per year.
Elevator Contract is $2,500 per quarter.
What is the NOI in year one and year of sale?
Do APOD, NO
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
