Pro Forma Income and Expense Statement, DeSoto Street Triplex

Scheduled Income

• Unit 1 projected rent: 1,350 per month

• Unit 2 projected rent: 1,250 per month

• Unit 3 projected rent: 1,200 per month

• Other income: 0

Gross Scheduled Income [GSI]:
1,350 plus 1,250 plus 1,200 equals 3,800 per month, or 45,600 per year

Vacancy and Credit Loss

• Vacancy allowance at 6 percent: 2,736

Effective Gross Income [EGI]:
45,600 minus 2,736 equals 42,864

Operating Expenses

Below are the mid range estimates we previously used.

• Property taxes: 3,000

• Property insurance: 4,000

• Repairs and maintenance: 3,000

• Property management at 10 percent of EGI: 4,286

• Landscaping: 900

• Pest control: 500

• Utilities paid by owner: 1,200

• Misc operating expenses: 1,000

Total Operating Expenses:
3,000 plus 4,000 plus 3,000 plus 4,286 plus 900 plus 500 plus 1,200 plus 1,000 equals 17,886

Net Operating Income [NOI]

EGI 42,864 minus Total Operating Expenses 17,886 equals:

Projected NOI: 24,978

Rounded for marketing: approximately 25,000

Capitalization Rate

If asking price is 330,000:

NOI 24,978 divided by 330,000 equals a cap rate of 7.57 percent

Notes

• Figures represent scheduled stabilized performance after improvements

• Actual performance will vary based on renovation scope, tenant placement, and management strategy

• Expenses are based on typical Volusia County small multifamily averages and prior estimates used in your investor packet