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Business, 07.11.2019 05:31 GladToBeACarmine

Aproperty consists of 8 office suites, 3 on the first floor and 5 on the second floor. the contract rents are as follows: 2 suites at $1,800 per month, 1 at $3,600 per month and 5, at $1,560 per month. annual market rent for all suites increase 3% per year after the first year. vacancy and collection losses are estimated at 10% of potential gross rent per year. operating expenses and reserve for replacement or capital expenditures are 45% of effective gross income each year. the expected holding period is 5 years. at the end of the holding period you are expecting to sell the property for $1,180,472.a. prepare the first year pro forma generating the noi for year 1.

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