Class Project 1 Demo -- Proforma (2011 data)

		Class Project 1 Demo -- Proforma (2011 data)
1. Parameters
	Rent going up annually at			5%
	Inflation rate			3.50%
	Property Value going up at			7%
	10-years T-bill			2.16%	we use	5%
2. Proforma
				2011	2012	2013	2014	2015
1		Rent Income		90900	95445	100217.3	105228.113	110489.5
2	less	Vacancy	8%	-7272	-7635.6	-8017.38	-8418.249	-8839.161
3	Before Management Fee			83628	87809.4	92199.87	96809.8635	101650.4
4
5	less	Management Fee		-6690.24	-7024.752	-7375.99	-7744.7891	-8132.029
6	less	property tax		-1572	-1627.02	-1683.966	-1742.9045	-1803.906
7	less	Insurance		-2580	-2670.3	-2763.761	-2860.4921	-2960.609
8	less	utilities		-12000	-12420	-12854.7	-13304.615	-13770.28
9	less	Repairs	90	-19440	-20120.4	-20824.61	-12960	-13413.6
10	less	Lawn/Snow		-1200	-1200	-1200	-1200	-1200
11	Before Interest			40145.76	42746.93	45496.84	56997.0633	60369.94
12
13	Payment of Assumed Loan			($26,029.21)	($26,029.21)	($26,029.21)	($26,029.21)	($26,029.21)
14	Payment of Wrap-around Loan			($6,371.25)	($6,371.25)	($6,371.25)	($6,371.25)	($6,371.25)
15	Before income tax			7745.3066	10346.47	13096.39	24596.6099	27969.48
16	Cash on Cash		130000	5.96%	7.96%	10.07%	18.92%	21.51%
17
18	Value of the Property		375000	401250	429337.5	459391.1	491548.504	525956.9
19	Equity Gain			26250	28087.5	30053.63	32157.3788	34408.4
20			130000	20.19%	21.61%	23.12%	24.74%	26.47%
22								estimated
23	Loan 1 Paydown			9279.39	10099.6	10992.31	11963.93	13008
24	Loan 2			2725.82	1407.37	1501.62	1602.19	1704
25	Total Paydown			12005.21	11506.97	12493.93	13566.12	14712
26			130000	9.23%	8.85%	9.61%	10.44%	11.32%
27
28	Total Profit Before personal tax			46000.517	49940.94	55643.94	70320.1086	77089.88
29
30	ROI without opportunity cost			35.39%	38.42%	42.80%	54.09%	59.30%
31
32	Present Value of Total Profit			43810.016	45297.91	48067.33	57852.5274	60401.94
33
34	ROI with opportunity cost			33.70%	34.84%	36.97%	44.50%	46.46%