ABSTRACT
The most basic pro forma which follows the equivalent structure is the single-family residential home. This is a 1-unit asset only, i.e. single-rental stream. The inputs section continues to follow the cash flow diagram with the three-part Structure/Tier: Sources/Uses; Operations; and Finance/Debt, Valuation, and sale characteristics. Sources and Uses determine the amount of equity, i.e. CF0, required for the project. In theory, projects are stated as percentage of equity and debt, e.g. 80/20. This implies that 80% of the capital structure comes from a lending source and 20% is equity. Operations provide the inputs for how the project will "operate" over the time frame for the analysis. Revenue is Unit numbers, revenue per unit and revenue escalation per period. Finance/Valuation covers Finance (loan products and fees) and Valuation/Sale.
