The APOD is a very useful snapshot of the status of a property investment as of the projected Acquisition Date, showing most of the information relevant to the investment, absent any projections of performance.
| Purpose | Broker's Recap |
| Name | Los Amigos Apartments |
| Location | 1000 Mayfair Avenue |
| Property Type | Apartment Complex |
| Date | 11 April 2008 |
| Units | 42 |
| Price | $1,550,000 |
| -Loans | 1,240,000 |
| Down Payment | 310,000 |
| +Acq Costs | 15,500 |
| +Loan Points | 18,600 |
| Investment | 344,100 |
| $/Unit | % of GI | Annual $ | |
| Gross Income | |||
| 1 Bedroom Units (10 units) | $3,936 | 19.6% | $39,360 |
| 2 Bedroom Units (32 units) | 4,920 | 78.6% | 157,440 |
| Laundry | 86 | 1.8% | 3,600 |
| Total Gross Income | $4,771 | 100.0% | $200,400 |
| - Vacancy & Credit Loss | 239 | 5.0% | 10,020 |
| Effective Income | $4,533 | 95.0% | $190,380 |
| Less: Operating Expenses | |||
| Property Taxes | 443 | 9.3% | 18,600 |
| Insurance | 71 | 1.5% | 3,000 |
| Pool | 29 | 0.6% | 1,200 |
| Gardener | 18 | 0.4% | 750 |
| Utilities | 114 | 2.4% | 4,800 |
| Resident Manager | 238 | 5.0% | 10,000 |
| Maintenance | 76 | 1.6% | 3,200 |
| Reserve | 76 | 1.6% | 3,200 |
| Miscellaneous | 29 | 0.6% | 1,200 |
| Management Fee | 227 | 4.8% | 9,519 |
| Total Operating Expenses | $1,321 | 27.7% | $55,469 |
| Net Operating Income | $3,212 | 67.3% | $134,911 |
| Less: Debt Service | 3,109 | 65.2% | 130,583 |
| Net Operating Cash Flow | $103 | 2.2% | $4,328 |
| Capitalization Rate | 8.70% |
| Gross Income Multiplier | 7.73 |
| Cash on Cash | 1.26% |
| Debt Coverage Ratio | 1.033 |
| Price/Unit | $36,905 |
shows the cash requirement at acquisition considering price, closing costs, and loan proceeds.
| Cost of Property Acquired | |||
| Price of Property | $1,550,000 | ||
| + Closing Costs (1%) | 15,500 | ||
| Total Cost of Property Acquired | $1,565,500 | ||
| Property Financing | |||
| Bank of America Loan Principal | $1,240,000 | ||
| - Points (1.5 Points) | 18,600 | ||
| Bank of America Loan Proceeds | $1,221,400 | ||
| Total Net Loan Proceeds | 1,221,400 | ||
| Cash Required at Acquisition | $344,100 |
This Statement is for the Los Amigos Apartments as acquired on 1 January 2001 for a Price of $1,550,000, subject to a Loan of $1,240,000, for a Down Payment of $310,000.
allows you to produce ProForma Income Statements. These reports can be prepared either before or after tax. They combine the Basic and Detail Analysis report information into a very readable format familiar to real estate professionals and accountants. Further, the reports offer information not shown in the Basic and Detail Analysis Reports, such as Ratio Analysis, projected Sale Proceeds by year, and Return and NPV measures by year, as well as a Common Size Statement and a Dollars/Square Foot or Dollars/Unit Statement.
| 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
| Gross Income | ||||||||||
| 1 Bedroom Units | $39,360 | $41,328 | $43,394 | $45,564 | $47,842 | $50,234 | $52,746 | $55,383 | $58,153 | $61,060 |
| 2 Bedroom Units | 157,440 | 165,312 | 173,578 | 182,256 | 191,369 | 200,938 | 210,985 | 221,534 | 232,611 | 244,241 |
| Laundry | 3,600 | 3,780 | 3,969 | 4,167 | 4,376 | 4,595 | 4,824 | 5,066 | 5,319 | 5,585 |
| Total Gross Income | $200,400 | $210,420 | $220,941 | $231,988 | $243,587 | $255,767 | $268,555 | $281,983 | $296,082 | $310,886 |
| Less: Vacancy & Credit Loss | 10,020 | 10,521 | 11,047 | 11,599 | 12,179 | 12,788 | 13,428 | 14,099 | 14,804 | 15,544 |
| Effective Income | $190,380 | $199,899 | $209,894 | $220,389 | $231,408 | $242,978 | $255,127 | $267,884 | $281,278 | $295,342 |
| Less: Operating Expenses | ||||||||||
| Property Taxes | 18,600 | 18,972 | 19,351 | 19,738 | 20,133 | 20,536 | 20,947 | 21,366 | 21,793 | 22,229 |
| Insurance | 3,000 | 3,150 | 3,308 | 3,473 | 3,647 | 3,829 | 4,020 | 4,221 | 4,432 | 4,654 |
| Pool | 1,200 | 1,260 | 1,323 | 1,389 | 1,459 | 1,532 | 1,608 | 1,689 | 1,773 | 1,862 |
| Gardener | 750 | 788 | 827 | 868 | 912 | 957 | 1,005 | 1,055 | 1,108 | 1,163 |
| Utilities | 4,800 | 5,136 | 5,496 | 5,880 | 6,292 | 6,732 | 7,204 | 7,708 | 8,247 | 8,825 |
| Resident Manager | 10,000 | 10,500 | 11,025 | 11,576 | 12,155 | 12,763 | 13,401 | 14,071 | 14,775 | 15,513 |
| Maintenance | 3,200 | 3,360 | 3,528 | 3,704 | 3,890 | 4,084 | 4,288 | 4,503 | 4,728 | 4,964 |
| Reserve | 3,200 | 3,360 | 3,528 | 3,704 | 3,890 | 4,084 | 4,288 | 4,503 | 4,728 | 4,964 |
| Miscellaneous | 1,200 | 1,260 | 1,323 | 1,389 | 1,459 | 1,532 | 1,608 | 1,689 | 1,773 | 1,862 |
| Management Fee | 9,519 | 9,995 | 10,495 | 11,019 | 11,570 | 12,149 | 12,756 | 13,394 | 14,064 | 14,767 |
| Total Operating Expenses | $55,469 | $57,780 | $60,203 | $62,743 | $65,405 | $68,197 | $71,126 | $74,198 | $77,421 | $80,803 |
| Net Operating Income | $134,911 | $142,119 | $149,691 | $157,646 | $166,003 | $174,781 | $184,002 | $193,686 | $203,857 | $214,539 |
| Less: Debt Service | 130,583 | 130,583 | 130,583 | 130,583 | 130,583 | 130,583 | 130,583 | 130,583 | 130,583 | 130,583 |
| Net Operating Cash Flow | $4,328 | $11,536 | $19,108 | $27,063 | $35,420 | $44,199 | $53,419 | $63,103 | $73,275 | $83,956 |
| Taxable Income and Taxes | ||||||||||
| (Losses Carried Forward) | ||||||||||
| Taxable Revenues | $190,380 | $199,899 | $209,894 | $220,389 | $231,408 | $242,978 | $255,127 | $267,884 | $281,278 | $295,342 |
| Less: Deducted Expenses | 55,469 | 57,780 | 60,203 | 62,743 | 65,405 | 68,197 | 71,126 | 74,198 | 77,421 | 80,803 |
| Less: Interest Expense | 123,690 | 122,968 | 122,171 | 121,290 | 120,317 | 119,242 | 118,054 | 116,742 | 115,293 | 113,692 |
| Less: Amortized Points | 620 | 620 | 620 | 620 | 620 | 620 | 620 | 620 | 620 | 620 |
| Less: Depreciation | 44,833 | 46,782 | 46,782 | 46,782 | 46,782 | 46,782 | 46,782 | 46,782 | 46,782 | 44,833 |
| Ordinary Income | ($34,231) | ($28,251) | ($19,882) | ($11,045) | ($1,716) | $8,138 | $18,546 | $29,542 | $41,163 | $55,394 |
| Taxable Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,263 | 55,394 |
| (Cum Suspended Losses) | 34,231 | 62,483 | 82,364 | 93,410 | 95,125 | 86,987 | 68,442 | 38,899 | 0 | 0 |
| Taxes Due (- = Savings) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 702 | 17,172 |
| Cash Flow After Tax | $4,328 | $11,536 | $19,108 | $27,063 | $35,420 | $44,199 | $53,419 | $63,103 | $72,573 | $66,784 |
| Sale Proceeds: | ||||||||||
| Sale Value | $1,349,110 | $1,421,186 | $1,496,909 | $1,576,461 | $1,660,030 | $1,747,813 | $1,840,018 | $1,936,862 | $2,038,573 | $2,145,390 |
| Less: Sale Costs (7%) | 94,438 | 99,483 | 104,784 | 110,352 | 116,202 | 122,347 | 128,801 | 135,580 | 142,700 | 150,177 |
| Less: Loan Repayment | 1,233,107 | 1,225,492 | 1,217,080 | 1,207,787 | 1,197,521 | 1,186,180 | 1,173,652 | 1,159,811 | 1,144,522 | 1,127,631 |
| Sale Proceeds Before Tax | 21,565 | 96,211 | 175,045 | 258,321 | 346,307 | 439,286 | 537,565 | 641,470 | 751,351 | 867,582 |
| Less: Taxes due to Sale | (67,739) | (48,315) | (28,658) | (6,522) | 23,986 | 58,317 | 92,318 | 128,127 | 166,323 | 198,078 |
| Sale Proceeds After Tax | 89,305 | 144,525 | 203,703 | 264,843 | 322,321 | 380,968 | 445,247 | 513,343 | 585,028 | 669,503 |
| Ratio Analysis: | ||||||||||
| Profitability Ratios | ||||||||||
| Capitalization Rate | 8.70% | 9.17% | 9.66% | 10.17% | 10.71% | 11.28% | 11.87% | 12.50% | 13.15% | 13.84% |
| Cash on Cash Before Tax | 1.26% | 3.35% | 5.55% | 7.86% | 10.29% | 12.84% | 15.52% | 18.34% | 21.29% | 24.40% |
| Cash on Cash After Tax | 1.26% | 3.35% | 5.55% | 7.86% | 10.29% | 12.84% | 15.52% | 18.34% | 21.09% | 19.41% |
| Risk Ratios | ||||||||||
| Debt Coverage Ratio | 1.033 | 1.088 | 1.146 | 1.207 | 1.271 | 1.338 | 1.409 | 1.483 | 1.561 | 1.643 |
| Breakeven Occupancy | 92.8% | 89.5% | 86.4% | 83.3% | 80.5% | 77.7% | 75.1% | 72.6% | 70.3% | 68.0% |
| Loan Balance/Property Value | 91.4% | 86.2% | 81.3% | 76.6% | 72.1% | 67.9% | 63.8% | 59.9% | 56.1% | 52.6% |
| Assumption Ratios | ||||||||||
| NOI/Property Value | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| Operating Expense Ratio | 27.7% | 27.5% | 27.2% | 27.0% | 26.9% | 26.7% | 26.5% | 26.3% | 26.1% | 26.0% |
| Analysis Measures: | ||||||||||
| IRR Before Debt | 1.2% | 5.9% | 8.3% | 9.7% | 10.7% | 11.4% | 11.9% | 12.4% | 12.7% | |
| IRR Before Tax | 5.7% | 10.1% | 12.9% | 14.7% | 15.9% | 16.7% | ||||
| IRR After Tax | 4.4% | 8.1% | 10.6% | 12.4% | 13.7% | 14.6% |
This Statement is for the Los Amigos Apartments as acquired on 1 January 2001 for a Price of $1,550,000, subject to a Loan of $1,240,000, for a Down Payment of $310,000.
| 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
| Gross Income | ||||||||||
| 1 Bedroom Units | 19.6% | 19.6% | 19.6% | 19.6% | 19.6% | 19.6% | 19.6% | 19.6% | 19.6% | 19.6% |
| 2 Bedroom Units | 78.6% | 78.6% | 78.6% | 78.6% | 78.6% | 78.6% | 78.6% | 78.6% | 78.6% | 78.6% |
| Laundry | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% | 1.8% |
| Total Gross Income | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Less: Vacancy & Credit Loss | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| Effective Income | 95.0% | 95.0% | 95.0% | 95.0% | 95.0% | 95.0% | 95.0% | 95.0% | 95.0% | 95.0% |
| Less: Operating Expenses | ||||||||||
| Property Taxes | 9.3% | 9.0% | 8.8% | 8.5% | 8.3% | 8.0% | 7.8% | 7.6% | 7.4% | 7.2% |
| Insurance | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% |
| Pool | 0.6% | 0.6% | 0.6% | 0.6% | 0.6% | 0.6% | 0.6% | 0.6% | 0.6% | 0.6% |
| Gardener | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% |
| Utilities | 2.4% | 2.4% | 2.5% | 2.5% | 2.6% | 2.6% | 2.7% | 2.7% | 2.8% | 2.8% |
| Resident Manager | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |