Property Income

Increase in Rent (Years 1–10)
Estimated Vacancy Rate (Years 1–10)

Property Expenses

Increase in Property Taxes (Years 1–10)

Mortgage

Taxes and Depreciation

Ratios

Operating Forecast
years 12345 678910
Potential Gross Rent - - - - - - - - - -
Vacancy Allowance - - - - - - - - - -
- - - - - - - - - -
Other Income - - - - - - - - - -
Effective Gross Income - - - - - - - - - -
Operating Expenses
Management Fee - - - - - - - - - -
Salary Expense - - - - - - - - - -
Utilities - - - - - - - - - -
Insurance - - - - - - - - - -
Supplies - - - - - - - - - -
Advertising - - - - - - - - - -
Maintenance & Repairs - - - - - - - - - -
Property Taxes - - - - - - - - - -
Total Expenses - - - - - - - - - -
Net Operating Income - - - - - - - - - -
Forecasted Operating Expense Ratios
- - - - - - - - - -
Amortization Schedule
Interest paid - - - - - - - - - -
Principal paid - - - - - - - - - -
Total Debt Service - - - - - - - - - -
Mortgage Balance
- - - - - - - - - -
Projected Before-Tax Cash Flows from Operations
Potential Gross Rent - - - - - - - - - -
Vacancy Allowance - - - - - - - - - -
- - - - - - - - - -
Other Income - - - - - - - - - -
Effective Gross Income - - - - - - - - - -
Operating Expenses
Management Fee - - - - - - - - - -
Salary Expense - - - - - - - - - -
Utilities - - - - - - - - - -
Insurance - - - - - - - - - -
Supplies - - - - - - - - - -
Advertising - - - - - - - - - -
Maintenance & repairs - - - - - - - - - -
Property Taxes - - - - - - - - - -
Total Expenses - - - - - - - - - -
Net Operating Income - - - - - - - - - -
Debt Service - - - - - - - - - -
Before-Tax Cash Flow - - - - - - - - - -
Tax Calculation
Net Operating Income - - - - - - - - - -
Interest Expense - - - - - - - - - -
Depreciation - - - - - - - - - -
Taxable Income (Loss) - - - - - - - - - -
Marginal Tax Rate - - - - - - - - - -
Income Tax - - - - - - - - - -
Projected After-Tax Cash Flows from Operations
Potential Gross Rent - - - - - - - - - -
Vacancy Allowance - - - - - - - - - -
- - - - - - - - - -
Other Income - - - - - - - - - -
Effective Gross Income - - - - - - - - - -
Operating Expenses
Management Fee - - - - - - - - - -
Salary Expense - - - - - - - - - -
Utilities - - - - - - - - - -
Insurance - - - - - - - - - -
Supplies - - - - - - - - - -
Advertising - - - - - - - - - -
Maintenance & repairs - - - - - - - - - -
Property Taxes - - - - - - - - - -
Operating Expenses - - - - - - - - - -
Net Operating Income - - - - - - - - - -
Debt Service - - - - - - - - - -
Before-Tax Cash Flow - - - - - - - - - -
Income Taxes - - - - - - - - - -
After-Tax Cash Flow - - - - - - - - - -

Estimate of Investor's Adjusted Tax Basis

Purchase Price -
Transaction Costs -
Initial Tax Basis -
Cumulative Depreciation -
Adjusted Basis Prior to Sale -
Selling Costs -
Adjusted Basis at Time of Sale -

Estimated Income Tax Consequences

Selling Price -
Adjusted Basis -
Initial Gain on Disposal -
Gain from Depreciation Recapture -
Long Term Capital Gain -
Tax on Depreciation Recapture -
Tax on Capital Gain -
Total Tax Liability on Sale -

Etimate of After-Tax Equity Reversion

Selling Price -
Selling Costs -
Net Sale Proceeds -
Mortgage Balance -
Before Tax Equity Reversion -
Taxes Due on Sale -
After Tax Equity Reversion -

Income Multipliers

Gross Rent Multiplier: Market Price - / Gross Rents - = -
Gross Income Multiplier: Market Price - / Effective Gross Income - = -
Net Income Multiplier: Market Price - / Net Operating Income - = -

Using Multipliers to Estimate Market Value

Gross Rent Multiplier Method: Gross Rents - x Input GRM - = -
Gross Income Multiplier Method: Effective Gross Income - x Input GIM - = -
Net Income Multiplier Method: Net Operating Income - x Input NIM - = -

Financial Ratios

Operating Ratio: Operating Expenses - / Effective Gross Income - = -
Break-Even Ratio: (Operating Expenses + Annual Debt Service) - / Effective Gross Income - = -
Debt Coverage Ratio: Net Operating Income - / Annual Debt Service - = -
Loan-To-Value (LTV) Ratio: Mortgage - / Market Price - = -

Profitability Measures

Capitalization Rate: Net Operating Income - / Market Price - = -
Using Cap Rate to Estimate Market Value: Net Operating Income - / Input cap rate - = -
Equity Dividend Rate:
(before-tax)		 Before Tax Cash Flow - / Initial Equity - = -
Equity Dividend Rate:
(after-tax)		 After Tax Cash Flow - / Initial Equity - = -
Discounted Cash Flows
Years 0 12345 678910
Before Tax Cash Flow - - - - - - - - - - -
Before Tax Equity Reversion - - - - - - - - - - -
Total - - - - - - - - - - -
Before Tax IRR -
After Tax Cash Flow - - - - - - - - - - -
After Tax Equity Reversion - - - - - - - - - - -
Total - - - - - - - - - - -
After Tax IRR -

Risk-Adjustment Methods

Anticipated holding period: -

Assumptions:

Purchase price:
$210,000
Transaction costs:
$15,000
Initial Investment Basis:
$225,000
Mortgage:
$150,000
Initial Equity:
$75,000
Selling Price:
$296,226
– Selling Costs:
$6,000
Net Proceeds:
$290,226
– Mortgage Balance:
$128,700
Before-tax Reversion:
$161,526
– Taxes due on sale:
$28,700
After-Tax Reversion:
$132,826
Payback Period
Years 0 12345 678910
After Tax Cash Flow - - - - - - - - - - -
After Tax Equity Reversion - - - - - - - - - - -
Total - - - - - - - - - - -
Cumulative - - - - - - - - - - -

Payback Years: -
Discount Rate: -
PV of Equity
Variation in Net Operating Income
Input % variation:
-
% change in Equity Value:
-
Equity Value
with −10% variation
expected
with +10% variation
-
-
-
Variation in Sales Price
Input % variation:
-%
% change in Equity Value:
-
with −10% variation
expected
with +10% variation
-
-
-

Assumptions:

Purchase price:
Transaction costs:
Initial Investment Basis:
Mortgage:
Initial Equity:
Selling Price:
– Selling Costs:
Net Proceeds:
– Mortgage Balance:
Before-tax Reversion:
– Taxes due on sale:
After-Tax Reversion:
Marginal Tax Rate: Depreciable Basis Recovery Period Depreciation Mid-month
years 12345 678910
Potential Gross Rent - - - - - - - - - -
Vacancy Allowance - - - - - - - - - -
- - - - - - - - - -
Other Income - - - - - - - - - -
Effective Gross Income - - - - - - - - - -
Management Fee - - - - - - - - - -
Salary Expense - - - - - - - - - -
Utilities - - - - - - - - - -
Insurance - - - - - - - - - -
Supplies - - - - - - - - - -
Advertising - - - - - - - - - -
Maintenance & repairs - - - - - - - - - -
Property Taxes - - - - - - - - - -
- Operating Expenses - - - - - - - - - -
Net Operating Income - - - - - - - - - -
- Debt Service - - - - - - - - - -
Before-Tax Cash Flow - - - - - - - - - -
Net Operating Income - - - - - - - - - -
- Interest Expense - - - - - - - - - -
- Depreciation - - - - - - - - - -
Taxable Income (Loss) - - - - - - - - - -
x Marginal tax rate - - - - - - - - - -
Income taxes - - - - - - - - - -
Change in Net Operating Income
After-Tax Cash Flow - - - - - - - - - -
After-tax Equity Reversion - - - - - - - - - -
Total Cash Flow - - - - - - - - - -
Change in Equity Value: - =
Change in Sales Price
After-Tax Cash Flow - - - - - - - - - -
After-tax Equity Reversion - - - - - - - - - -
Total Cash Flow - - - - - - - - - -
Change in Equity Value: - =