i know how to fill out page 1 and 2 im just confused where it says " both units are currently rented for 1400 per month" is it 1400 together or 2800

LENDER UNDERWRITING OPERATING STATEMENT CASE STUDY: You intend to purchase a duplex for $200,000 and obtain an 80% loan at 5% interst for 30 years. The lender wants to examine the purchase in order to determine the amount of one year cash flow; either positive or negative. The lender's appraiser is assigned to completing the operating statement for the lender: FACTS: Annual Income: Both units are currently rented for $1,400 per month. The appraiser expects 8% vacancy/rent loss for the year. Annual Expenses: The tenants are responsible for all utilities. However, the appraiser has included $300 for pest control and $500 for landscape maintenance. Interior expense is projected to be $1,000 total and general maintenance is projected to be $1,000. Other investors are paying 5% of EGI annually for management expense. Supply expense is estimated to be $200. The units were recently remodeled with new roof and flooring new AC units and furnaces as well as new water heaters. The kitchen appliances are ten years old with an expected remaining life of ten years. The cost new of the appliances are: stove/range $700, refrigerator $800 and dishwasher $400. Monthly housing expense (PITI) includes the principle and interest on the proposed loan_ - $800 annual hazard insurance/12 months and $4,500 annual property taxes/12 months. What is the net monthly cash flow reported to the lender? Annual Income and Expense Projection for Next 12 months By Applicant'Appraiser Adjustments by Lender's Underwriter Income Do not include income for owner-occupied units) Gross Annual Rental (from units) to be rented Other Income include sources) Total Less Vacancy/Rent Loss Effective Gross Income ............. Expenses Do not include expenses for owner-occupied units Electricity Gas Fuel Oil Fuel Water/Sewer Trash Removal Pest Control Other Taxes or Licenses Casual Labor This includes the costs for public area cleaning, snow removal, etc., even though the applicant may not elect to contract for such services Interior Paint Decorating This includes the costs of contract labor and materials that are required to maintain the interiors of the living unit General Repairs Maintenance This includes the costs of contract labor and materials that are required to maintain the public corridors, stairways, roofs, mechanical systems, grounds, etc Management Expenses These are the customer expenses that a professional management company would charge to manage the property Supplies This includes the costs of items like light bulbs, janitorial supplies, etc Total Replacement Reserves - See Schedule on Pg. 2 Miscellaneous Total Operating Expenses Replacement Reserve Schedule Adequate replacement reserves must be calculated regardless of whether actual reserves are provided for on the owner's operating statements or are customary in the local market. This represents the total average yearly reserves. Generally, all equipment and components that have a remaining life of more than one year - such as refrigerators, stoves, clothes washers/dryers, trash compactors, furnaces, roofs, and carpeting etc. - should be expensed on a replacement cost basis. Equipment Replacement Remaining Life By Applicant Appraiser Lender Adjustments Cost _82 Yrs. Units = $_ Units = $_ @ $ Units = 5 Stoves Ranges Refrigerators Dishwashers AC Units C. Washer Dryers HW Heaters Furnace(s) (Other) @ @ @ @ $ $ $ $ @ $ Roof Yrs. One Blog Carpeting Wall to Walt) Units) (Public Areas) Remaining Lite Per Sq. Yd. -_ Yrs. Per Sq.Yd. -_ Yrs. = Total Sq. Yos@ $ Total Sq. Yos@ $ Total Replacement Reserves. (Erter on Pg. 1) Operating Income Reconciliation - $ - 12. $ Effective Gross income Total Operating Expenses Operating income Vortry Operating Income Moreny Operating income Northy Housing Expense Net Cashow (Note: Monthly Housing Expense includes principal and interest on the mortgage, hazard insurance premiums, real estate taxes, mortgage insurance premiums, HOA Cues, leasehold payments, and subordinate financing payments.)