cnrpa test answers

8/14/2019 Cnrpa Test Answers

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CNRPA TEST ANSWERS

A.) 9%MINIMUM RETURN TO SATISFY BOTH THE LENDER

B.) $2,108,800.00 WHAT YOU PAID FOR THE BUILDING

$105,440.00 COST PER UNIT

$98.54 COST PER SF

C.) $262,616.92 NOI AT THE END OF YEAR 10

D.) $4,376,948.71 HOW MUCH YOU SOLD THE BUILDING FOR

$218,847.44 COST PER UNIT

$204.53 COST PER SF

11.38GRM

E.) 21.94%IRR AT SALE

F.) $2,546,675.50 WHAT YOU COULD PAY FOR THE BUILDING IF 15%


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AND THE BUYER

IRR WAS REQUIRED


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BAND OF INVESTMENT ANALYSIS

Position Interest Percent x Rate of Return = Requirement

Equity "Buyer" 0.25 x 0.14 = 0.03

Lender 0.75 x 0.08 = 0.06

Total 0.09

Answer: 9% to satisfy both the lender and the buyer.


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Property Address

Description/Property Type 20 Unit Apartment Building

City Culver City

Rating/Quality (Bldg and Location) B/B

Age 1978

Number of Units 20Square Feet 21400

Average Sq. Ft. Per Unit 1070

Bedrooms 40

Bathrooms 40

Unit Mix/Rent Roll Number of Units

One Bedrooms 0

Two Bedrooms 20

Laundry 20

Price $2,373,333.33

Down $830,666.67

Loan $1,542,666.67

Gross Rent Multiplier 9.57

Cost Per Unit(CPU) $118,666.67

Cost Per Sqare Foot $110.90

CAP RATE 7.50%

Gross Scheduled Income(GSI) $248,000.00

Vacancy $0.00

Gross Operating Income(GOI) $248,000.00

Expenses ($70,000.00)

Net Operating Income(NOI) $178,000.00

Debt Service ($117,008.43)

Cash Flow $60,991.57

Cash on Cash 7.34%

ROI 7.34%

Aggregate IRR

IRR(Divided by the time investment held)

Year 10 Year Income

1 $248,000.00

2 $260,400.00

3 $273,420.00

4 $287,091.00


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5 $301,445.55

6 $316,517.83

7 $332,343.72

8 $348,960.90

9 $366,408.95

10 $384,729.40


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Net Rentable @93% Average Unit Size

19902 995.1x 93%

Rent Sq. Ft. Rent/Sq.Ft./Month

$1,000.00 995.10 $1.00

$33.33

35%

65%

(PFA TEST)plucked from air

0%

($3,500)

Vacancy GOI Expenses

$0.00 $248,000.00 ($70,000.00)

$0.00 $260,400.00 ($72,100.00)

$0.00 $273,420.00 ($74,263.00)

$0.00 $287,091.00 ($76,490.89)


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$0.00 $301,445.55 ($78,785.62)

$0.00 $316,517.83 ($81,149.19)

$0.00 $332,343.72 ($83,583.66)

$0.00 $348,960.90 ($86,091.17)

$0.00 $366,408.95 ($88,673.91)

$0.00 $384,729.40 ($91,334.12)

NPV Calculation: The Formula looks like "=NP

Remember to start your formula with an "=" si

The equal sign tells Excel that you are going t

The name next to the equals sign tells Excel wFor instance, if you are looking for Net Present

If you are looking for Internal Rate of Return y

After you have named the formula, Excel will

The arguments begin when you insert an open

An Argument are the values that Excel will us

Excel is very smart and tries to make it as eas

It will give you a little cheat sheet at the bott

The argument ends with the close of a parent

Excel to make it's calcuations. By way of exa

of return and the cash flows for each year asclosing the parenthesis, you will tell Excel to al

and to use the down payment as the basis of


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Monthly Income Per Unit Annual Income Per Unit

$- $-

$20,000.00 $240,000.00

$666.67 $8,000.00

Total Annual Income $248,000.00

Cash Flow

NOI Loan $(830,666.67)

$178,000.00 ($117,008.43) $60,991.57

$188,300.00 ($117,008.43) $71,291.57

$199,157.00 ($117,008.43) $82,148.57

$210,600.11 ($117,008.43) $93,591.68


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$222,659.93 ($117,008.43) $105,651.50

$235,368.64 ($117,008.43) $118,360.21

$248,760.06 ($117,008.43) $131,751.63

$262,869.73 ($117,008.43) $145,861.30

$277,735.04 ($117,008.43) $160,726.61

$293,395.27 ($117,008.43) $3,440,649.75

21.81%

(15%,I57:I67)+I56"

ign

write a formula

hat type of formula you are writingValue your formula would be =NPV

ur formula would be =IRR

sk you for your arguments

parenthesis. Each argument is separated by a comma.

in the formula to calculate your answer

for you as possible to write your formulas.

m of each formula to give you hints as to what to insert into the cell

esis. But you can still add additional information to allow

ple - when you are calculating the NPV you will provide the target rate

our arguments. Then after you close your argument bylso take into consideration that you invested funds as a down payment

the return you are receiving.


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Sale Proceeds

$4,889,921.24 Sale @ 6% CAP

$(1,307,813.46)Loan Repayment

$(317,844.88)Sale Cost

$3,264,262.90 Sale Proceeds


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Upon Sale:

$244,496.06 Cost Per Unit

$228.50 Cost Per Sqare Foot

12.71 Gross Rent Multiplier

NPV Calculation

$(830,666.67)

$60,991.57

$71,291.57$82,148.57

$93,591.68

$105,651.50

$118,360.21

$131,751.63

$145,861.30

$160,726.61

$3,440,649.75

15% Insert Target IRR to the Left

$480,876.53

$2,854,209.86

This is how much more or less thebuyer can pay to achieve theirtarget IRR. This amount will beadded to the original purchaseprice to tell you know how muchyou should pay for the property toachieve your target return


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Property Address

Description/Property Type 20 Unit Apartment Building

City Culver City

Rating/Quality (Bldg and Location) B/B

Age 1978 Net Rentable @93% Average Unit Size

Number of Units 20 19902 995.1

Square Feet 21400x 93%

Average Sq. Ft. Per Unit 1070

Bedrooms 40

Bathrooms 40

Unit Mix/Rent Roll Number of Units Rent Sq. Ft. Rent/Sq.Ft./Month

One Bedrooms 0

Two Bedrooms 20 $1,000.00 995.10 $1.00

Laundry 20 $33.33

Price $2,108,800.00

Down $738,080.00 35%

Loan $1,370,720.00 65%Gross Rent Multiplier 8.50

Cost Per Unit(CPU) $105,440.00

Cost Per Sqare Foot $98.54

CAP RATE 7.50%(PFA TEST)plucked from air

Gross Scheduled Income(GSI) $248,000.00

Vacancy ($19,840.00) 8%

Gross Operating Income(GOI) $228,160.00

Expenses ($70,000.00) ($3,500)

Net Operating Income(NOI) $158,160.00

Debt Service ($103,966.59)

Cash Flow $54,193.41

Cash on Cash 7.34%

ROI 7.34%

Aggregate IRRIRR(Divided by the time investment held)

Year 10 Year Income Vacancy GOI Expenses NOI

1 $248,000.00 ($19,840.00) $228,160.00 ($70,000.00) $158,1602 $260,400.00 ($20,832.00) $239,568.00 ($72,100.00) $167,468

3 $273,420.00 ($21,873.60) $251,546.40 ($74,263.00) $177,2834 $287,091.00 ($22,967.28) $264,123.72 ($76,490.89) $187,632

5 $301,445.55 ($24,115.64) $277,329.91 ($78,785.62) $198,544

6 $316,517.83 ($25,321.43) $291,196.40 ($81,149.19) $210,0477 $332,343.72 ($26,587.50) $305,756.22 ($83,583.66) $222,172

8 $348,960.90 ($27,916.87) $321,044.03 ($86,091.17) $234,9529 $366,408.95 ($29,312.72) $337,096.23 ($88,673.91) $248,422

10 $384,729.40 ($30,778.35) $353,951.05 ($91,334.12) $262,616

$(1,175,955

$54,193$63,501

$73,316

$83,666$94,577

$106,080$118,205

$130,986$144,455

$3,089,053

1

Buyer can pay $2,546,675

cnrpa test answers

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