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OPERATING ASSUMPTIONS
In order to prove the acquisition viability which in turn helps to determine the potential return on investment the following operating assumptions have been made. on market conditions and other factors.
• In-place discount historically has been estimated to be 9% through the five-year outlook historically has been 25%
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• General vacancy is estimated at 7%. Historically 5%.
• Utility reimbursement estimated at 7%. Historically 100%.
• Capital expenditure has been estimated in $700 per unit for the 5-year projection, keeping Replacement reserve at $250 per unit.
It's important to notice that these assumptions are just estimates and may be subject to change based on market conditions and other factors.
