Multi-Unit Pro Forma

A multi-unit pro forma is your roadmap to evaluating the financial potential of a multi-unit property. Here’s a quick guide:
Input Key Details: Enter property info like unit mix, rent per unit, purchase price, financing terms, and estimated costs for construction or renovation.
Estimate Revenue: Calculate gross rental income and any additional income streams (parking, storage, etc.).
Calculate Expenses: Input operating costs—property management, maintenance, utilities, and a vacancy allowance.
Determine NOI: Subtract expenses from revenue to get your Net Operating Income (NOI).
Factor in Debt Service: Subtract mortgage payments from NOI to find your cash flow after financing.
Assess Profitability: Use metrics like Cap Rate, Cash-on-Cash Return, and IRR to gauge the investment's potential.
Run Scenarios: Adjust variables to see how changes affect profitability, and include exit strategies to forecast returns.
Regularly Update: Keep your pro forma current with real numbers to ensure accurate financial insights.
A well-crafted pro forma helps you make informed investment decisions, optimizing your multi-unit property’s profitability.