chapter  5
Single-family residential
Pages 20

The most simple pro forma which follows the same general structure as a larger one is the single-family residential home. The Inputs section will be constructed first. In order to completely understand why this is constructed first, a decomposition of the Inputs section is necessary. While a single-family home is utilized as a simple example, the structure remains roughly equivalent for all real estate income-producing properties. As this is not income producing, the structure will change slightly to accommodate the 'for sale' nature of this asset class/product type. The Inputs section is structured into three tiers: Source of Funds, Operations, and Finance/Valuation. Tier 1 is the sources and uses table that summarizes the transaction at time of settlement is constructed. Tier 2, is the Operations section covering revenue and expense parameters. The Tier 3 is the Valuation section that covers finance and Valuation/Sale.