| Financing and Loan Information | |
| Loan to Value (75%): | $937,500 |
| Interest Rate: | 5.25% |
| Amortization Period (years): | 30 |
| Payments per year: | 12 |
| Holding Period (years): | 10 |
| Payment: | ($5,176.91) |
| Balloon Payment: | $482,507.93 |
| "Going In" Cap Rate: | 10.96% |
| "Residual" Cap Rate: | 11.20% |
| General Assumptions (used in DCF) | |
| Rental Growth Rate (3%): | 1.03 |
| Expense Growth Rate (2%): | 1.02 |
| VCL (2%): | -0.02 |
| Expense Ratio (20%): | 0.2 |
| Terminal Capitalization Rate (11.20%): | 0.112 |
| Ratios Operating Expense Ratio = 20% Debt Service Coverage Ratio (based on the actual net operating income previously obtained from the property): $137,000/$62,123 = 2.21 |
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