Residential Proforma

If you are looking at buying commercial property as an investment please use our proforma as a simple way to look at your costs and expected revenues.

Click Here for the Commercial Proforma

Residential Investment Income Proforma

UNTS				PER/UNIT	MON/INC		MON/INC	ANN/INC

		bach sts @				Laundry
	1 bdrm sts @					Other
	1 bdrm sts @					Other
	2 bdrm sts @					Other
	2 bdrm sts @					Other
	2 bdrm sts @					Other
	3 bdrm sts @					Other
	3 bdrm sts @					Other
	3 bdrm sts @					Other

	TOTAL UNITS		MON/ST/REV			MISC REVENUE

SUITE MIX

bach sts

1 bdrm sts

TOTAL ANNUAL INCOME

2 bdrm sts

3 bdrm sts

TOTAL STS

Expense Breakdown

Taxes

Please fill these fields in as monthly expenses.

Insurance

Janitorial

Utilities

Other

Prop/mngmnt

These 4 fields will default to the given percentage but can be changed for local market conditions.

Prop/maintce

Cap/resv

Vacancy

Month Total

Annual Total

Total Annual Income

Total Annual Expense

Return Before Debt Service

Enter the capitalization rate to determine the value based on the above data. When entering values below enter as .0(x) (x being the desired cap rate.) For example a cap rate of 9 would be entered as .09, a cap rate of 11 would be .11. This range of value is based on the net dollars after the fixed expenses are accounted for.

CAP Rate From

Returns Based On Income and Expenses

Sale Price

Capital Required

Mortgage Amount

Mortgage Information (AVAILABLE FINANCING WITH QUALIFYING)

Amt/mortgage

Amort/prd

Interest

Mon/pmt

Ann/pmt

Total Annual Income

Total Annual Expense

CAP Return Before Debt Service

CAP Return After Debt Service

Gross Rent Multiplier

Rate of Return to CAP Invested

Overall Rate of Return With No Debt Service and No Expense.

Based on the list price this property is showing a capitalization rate of

In order to project a true picture of the rate of return, the amount of the principal paid down, has to be taken into consideration. Therefore, the return after debt service, plus the principal paid down

will bring a return of

to the capital invested.

If the investor is prepared to take on the day to day operations of the building, he (she) can increase the rate of return to the capital invested.

For Example

Return before tax, after debt service

Principal paid in first year

Amount paid property manager

Half of the property maintenance (labor)

Capital reserve

Janitorial

TOTAL

divided by

gives a total return of

The following chart shows the effect 2.5% increase in revenue and expenses has on the rate of return to capital invested, averaged over a five year period.

YR#

REVENUE

EXPENSES

CAP/AFT/DE

PRIN/PAID

TOT/CAP

RATE/RET

Initial capital invested

Capital returned in five years

Annual Rate of Return Averaged Over 5 Yrs

Automatic Recalculation

RE/MAX Medalta Real Estate

Residential Proforma

Your Medicine Hat Real Estate Choice