Apartment Complex:
40 1-Bedroom Units Renting @ $700/month
25 2-Bedroom Units Renting @ $900/month
153-Bedroom Units Renting @ $1000/month
Other Income is 2% of the Potential Gross Rent
Vacancy Expense is 8% of Potential Gross Income
Loss Allowance is 2% of Potential Gross Income
Operating Expenses:
|
Property Taxes
|
|
|
75 Mills
|
|
Property Insurance
|
|
|
3% of EGI
|
|
Utilities:
|
|
|
|
|
|
Gas
|
|
|
10% of EGI
|
|
Electric
|
|
|
8% of EGI
|
|
Water & Sewer
|
|
5% of EGI
|
|
Telephone & Internet
|
0.5% of EGI
|
|
Trash
|
|
|
0.5% of EGI
|
|
Maintenance:
|
|
|
|
|
Supplies/Repairs
|
|
2% of EGI
|
|
Wages/Salaries
|
|
1% of EGI
|
|
Pest Control
|
|
1% of EGI
|
|
Carpet Cleaning/Power Washing
|
0.25% of EGI
|
|
Landscaping/Snow Removal
|
|
1.5% of EGI
|
|
Legal
|
|
|
|
1% of EGI
|
|
Turnover
|
|
|
|
30% of Avg Monthly Rent
|
|
Accounting
|
|
|
1% of EGI
|
|
Administration
|
|
|
0.5% of EGI
|
|
Management
|
|
|
5% of EGI
|
Your Qualified Loan: 70% LTV, 6.5% Interest Rate, 20 years, 10 year balloon, DCR = 1.4
Calculate the first ten years of the income statement through the ATCF.