Construct a Proforma Income Statement for (3) years based upon the following information and answer the appropriate questions:

Type:8-plex

Monthly Rent:$650 per unit(650 x 8 x 12)

Vacancy Allowance:7%

Expenses:

Annual Property Taxes$4500

Annual Insurance$1200

Utilities (average)$70/ month

Management10% effective gross

Maintenance (average)$1200/year

Advertising (average)$200/year

Reserves (5%)

Income to increase at 4% per year and expenses to increase at 6% per year

What would be the BTCF for each year if there was a $250,000, 20-year, 7.0% loan amortized monthly against the property?

What is the Debt Service Coverage Ratio for each year?