Knowing how a property will operate on an annual basis helps you make better tax, capital and cashflow decisions. The assumptions that you set for each pro forma drive detailed line items and events that are reflected in the supporting numbers.
Fig 5. Each underlined line item in the Multi Year ROIC (Fig 4) is supported by detailed information. In this example, we are looking at the expenses for year 3 (the totals appear to be off by $3 due to rounding). The system identifies important milestones that drive overall profitability, such as the elimination of PMI insurance or mortgage payments. Once you have found a property that fits your goals it`s time to execute with a winning team!