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Sample Pro Forma Single Family Rentals <br />it might be for a 2-4 unit property. <br />. Enter the estimated monthly rental amounts. These should be based on "rent comparables" of similar <br />units in the vicinity of the project, in conditions similar to the after-redeveloment condition of the rental <br />unit(s) in the project. <br />. No "other income" is included because single-family rentals do not have income from sources such as <br />common laundries or renting a function room. <br />. Next, enter your project's estimated annual expenses in the expense Iine items. These should be based on <br />past experience of the developer or data obtained from similar types of rental projects. Maintenance costs <br />of detached or semi-detatched single-family rentals are typically higher than for low-rise apartments. <br />However; tenants in scattered-site rental units are typically responsible for grounds maintenance, per their <br />leases. <br />' Net operating income (NOl) is calculated by subtracting total operating expenses from gross effective <br />income. This indicates the amount of income available to pay debt service and provide for "debt service <br />coverage." <br />' "Supportable debt" is then automatically calculated by a formula based on the NOI and the assumptions in <br />the "supportable debt service calculation" grid. ln this example, the calculation assumes a debt service ratio <br />of 1.2, which means that the NOI must be 1.2 times (or 20% higher) than the amount available for debt <br />service. The debt service amount is also calculated automatically based on the supportable debt amount. <br />B. 2O-YEAR CASH FLOW PROJECTION <br />It is a standard requirement of lenders for borrowers to provide a multi-year cash flow projection for a <br />period of years equal to the term of the loan. This projection spreadsheet allows users to enter assumptions <br />about inflation in rents and operating costs which automatically calculate increased income and expense <br />amounts for each year. This projection is used primarily to demonstrate that the debt service can be paid in <br />each year.