Quick Proforma Data
Building Data
Unit Type (br/ba) # of Units Avg Rent /Mo Total Annual Rent
1 br / 1 ba 15 $750 $135,000
2 br / 2 ba 30 $1,000 $360,000
3 br / 2 ba 45 $1,250 $675,000
3 br / 3 ba 60 $1,500 $1,080,000
Totals: 150 $1,250 $2,250,000
First Year Operating Statement
Potential Rental Income $2,250,000
Total Other Income $600 /UNIT/YR $90,000
Potential Gross Income $2,340,000
Vacancy & Credit Loss 10.00% -$234,000
Effective Gross Income $2,106,000
Property Taxes $250,000
Insurance $120,000
Maintenance $300,000
Management Fee 7.00% OF EGI $147,420
Other Expenses $1,500 /UNIT/YR $225,000
CapEx Reserves $250 /UNIT/YR $37,500
Total Expenses $1,079,920
Net Operating Income $1,026,080
Operating Margin 48.72%
Debt Service $811,674
Cash Flow Before Tax $214,406
Inflation / Variable Rates
Year 1 Year 2 Year 3
Vacancy 10.00% 8.00% 5.00%
Potential Rental Income N/A 5.00% 2.00%
Other Income N/A 3.00% 2.00%
Operating Expenses N/A 2.00% 2.00%
orma Data
Investment Data
Purchase Price $ 18,000,000
Terminal Cap Rate 6.00%
Cost of Sale EOY 5 3.00%
Financing Data
Loan Interest Rate 5.00%
Loan Amortization (years) 30
LTV 70%
DSCR 1.25
Loan Amount (LTV) $ 12,600,000
Loan Amount (DSCR) $ 12,742,656
Maximum Loan Amount $ 12,600,000
Initial Equity $ 5,400,000
Monthly Debt Service $67,640
Annual Debt Service $811,674
ariable Rates
Year 4 Year 5 Year 6
5.00% 5.00% 5.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
Proforma
Year 1 Year 2 Year 3 Year 4
Potential Rental Income $2,250,000 $2,362,500 $2,409,750 $2,457,945
Total Other Income $90,000 $92,700 $94,554 $96,445
Potential Gross Income $2,340,000 $2,455,200 $2,504,304 $2,554,390
Vacancy & Credit Loss -$234,000 -$196,416 -$125,215 -$127,720
Effective Gross Income $2,106,000 $2,258,784 $2,379,089 $2,426,671
Operating Expenses $1,079,920 $1,101,518 $1,123,549 $1,146,020
Net Operating Income $1,026,080 $1,157,266 $1,255,540 $1,280,651
Operating Margin 48.7% 51.2% 52.8% 52.8%
Debt Service $811,674 $811,674 $811,674 $811,674
Cash Flow Before Tax $214,406 $345,591 $443,866 $468,977
Future Sale Value
less: Cost of Sale
less: Loan Balance
Net Sale Proceeds
Year 5 Year 6
$2,507,104 $2,557,246
$98,374 $100,341
$2,605,478 $2,657,587
-$130,274 -$132,879
$2,475,204 $2,524,708
$1,168,940 $1,192,319
$1,306,264 $1,332,389
52.8% 52.8%
$811,674
$494,590
$21,771,064
$653,132
$11,570,420
$9,547,512
