REE-4143 Chapter Notes - Chapter 6: Earnings Before Interest And Taxes, Tax, Cash Flow
9 Dec 2018
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Income: rent, expenses, vacancy, sales price, value. Cash-flow forecasts from operations: sources of annual income. It is the income an owner would expect to receive prior to making any debt service payments. Cash-flow forecasts: rental income calculations, vacancy and credit loss estimate, potential gross income x vacancy and credit loss = vacancy amount, effective gross income, potential gross income vacancy and credit loss = effective gross. Income: five methods used to estimate, direct dollar estimate, expenses per square foot of gross building area, expenses per square foot of net building area, percent of effective gross income, expenses per unit. Replacement reserves: the reserve is a deduction that reflects the fact that components of the building with short economic lives may need to be replaced before the end of the economic life of the building. Estimating resale proceeds: 3 common methods used to estimate reversionary value, direct dollar forecast, estimated percent change, the terminal capitalization rate.
