Question: Show a 10-year proforma projection of the operating NOI and net property-before-tax cash flow (PBTCF) for a three-unit apartment house in which

(a) each unit currently (year 1) rents for $300/month;

(b) rents are projected to grow at 3% per year;

(c) the average tenant will remain three years, and then the apartment will be vacant an average of three months before the next tenant moves in;

(d) operating expenses are currently estimated at $1,500 per unit per year (including management expenses), expected to escalate at 3% per year;

(e) you anticipate needing to replace kitchen appliances for $1,000 per unit in year 3; and

(f ) you anticipate having to replace the single roof for $2,500 in year 5.