You have been asked to develop a pro forma statement of cash flow for the coming year for Autumn Seasons, a 200- unit suburban garden apartment community. This community has 200 two-bedroom apartments with current monthly rents of $800 respectively. Leases with tenants are usually made for 12-month periods. Current rents are expected to remain fixed for the next six months. After that time, monthly rents for each apartment type should increase by $10 per unit and remain at those levels for the remainder of the year. Ten apartments were leased three months ago, 20 apartments were leased two months ago, and 10 two-bedroom units were leased last month for $805. All other units have been leased recently at current rents. All of the previously leased units also are on 12-month leases. When those roll over, all are expected to be renewed at market rents upon rollover for an additional 12 months. Presently, 16 two-bedroom units are vacant. This vacancy pattern should remain the same for the remainder of the year.

Autumn Seasons anticipate that during the coming year, it will earn other income from laundry facilities, the awarding of an exclusive cable TV contract, parking, plus fees from the net deposits, late fees, and so on of $200,000. Autumn Seasons expect to pay total turnover and operating expenses of $400 per month, per occupied unit during the next year. However, it expect to recover some of these expenses for heating and central cooling that it provide to tenants in an amount totaling $100 per month, per occupied unit. During the next year, it is also anticipated that $100,000 will be required for recurring, make ready expenses (carpet, paint, drywall repair etc.) and another $250,000 will be required as an allowance for non-recurring items including parking lot repairs, and so on. A total of $10,000 in fees will be paid to Apartment Locator Services, a company that provides marketing services and new tenants for Autumn.

Prepare a statement of operating cash flow (NOI) for the coming year.

Add to the (a) anticipated outlays for non-recurring items and commissions. What will be net cash flow for the coming year?

Oakwood Apartment Example
Building Name	Oakwood
Address
City
State
Total Units
Unit Size
Building Size (SF)
Analysis Begin Date
Holding Period
Discount Rate
Terminal Rate
Selling Cost
Inputs	Apartment Unit
Name	Two Bedroom
Units
Monthly Rent
Lease Term (Yrs)
Market Monthly Rent
Market Rent Increase
Laundry Income/unit/year
Laundry Income increase
Market Vacancy Rate
Credit Loss Rate
	% of EGI	$ Amount	$ per Unit	Change %
Real Estate Taxes
Office Expenses
Insurance
Repairs & Maintenance
Advertising
Management
Utilities
Miscellaneous Expenses
Outputs
Year	1	2	3	4	5	6
Income:
Market Rent from lease renewals	$0	$0	$0	$0	$0	$0
Laundry Income	$0	$0	$0	$0	$0	$0
Potential Gross Income (PGI)	$0	$0	$0	$0	$0	$0
Less: Vacancy	$0	$0	$0	$0	$0	$0			Laundry income not included in vacancy calc
Less: Credit Loss	$0	$0	$0	$0	$0	$0			Laundry income not included in credit loss calc
Effective Gross Income (EGI)	$0	$0	$0	$0	$0	$0
	$0	$0	$0	$0	$0	$0
Expenses:
Real Estate Taxes	$0	$0	$0	$0	$0	$0
Office Expenses	$0	$0	$0	$0	$0	$0
Insurance	$0	$0	$0	$0	$0	$0
Repairs & Maintenance	$0	$0	$0	$0	$0	$0
Advertising	$0	$0	$0	$0	$0	$0
Management	$0	$0	$0	$0	$0	$0
Utilities	$0	$0	$0	$0	$0	$0
Miscellaneous Expenses	$0	$0	$0	$0	$0	$0
Total Expenses	$0	$0	$0	$0	$0	$0
Net Operating Income (NOI)	$0	$0	$0	$0	$0	$0
Expenses % of EGI	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!	#DIV/0!
Net Operating Income	$0	$0	$0	$0	$0	$0
PV Factors	1.00000	1.00000	1.00000	1.00000	1.00000
Present Value	$0	$0	$0	$0	$0
Resale	#DIV/0!			Sum PV NOI	$0
Selling Cost	#DIV/0!			PV Resale	#DIV/0!
Net Resale	#DIV/0!			Value	#DIV/0!
PV Factor	1.00000
PVResale	#DIV/0!
			Implied Change in Value		#DIV/0!