Walk through a complete apartment cash flow analysis using the planEASe Software. To make the presentation interactive install a full functioning time based trial. The analysis is entered after tax with loans, and multiple expense/revenue items. Ratios and measures like IRR, NPV, cash on cash, cap rate, and DCR will be produced. Also, sensitivity analysis will be used to show 'what if' possibilities.

1. apartment cash flows
Come to a decision about the price for purchase or
listing of a multi-family / apartment for purchase or listing
based on all the future cash flows that you estimate.
Ratios and measures like cap rate, cash-on-cash, IRR,
Net Present Value, will be used along with sensitivity
analysis. All areas of the cash flow will be covered
including revenues, expenses, loans, and capital
spending with unlimited detail and after tax.
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc

2. At the end you can do this!
Create a micro website that has
all the cash flows and explains the
ratios, measures, and
assumptions with a password.
Just send the URL to whoever you
want to have see the analysis.
Of course you and print the
analysis as well.
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc

3. 1. Starting Point - Entering General Information
• Video 3:15 Minutes
• Click on File/New Assumptions on menu bar.
• Investment Name - 'Los Amigos Apartments'
• APOD Purpose - 'Broker's Recap'
• Property Location - '1000 Mayfair Avenue'
• Property Type - 'Apartment Complex'
• Square Feet or Units - '42'
• Fiscal Year Starts on - 'Jan 1'
• Comments - Leave Blank.
• And click OK.
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
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Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

4. Enter the analysis with the tutorial using the full
functioning free trial. You can follow the tutorial step
by step, or enter you own analysis instead.
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
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5. 2. Investment Page (Purchase and Sale)
• Video 3:30 Minutes
• Price of Property - '6000000'
• Closing Costs - '1'
• Date of Acquisition - '1.16'
• Holding Period - '10'
• Inflation Rate - '4'
• Sale Price Method
– Select Capitalize Next Year's NOI
• Sale Price Parameter - '8'
• Selling Costs - '6'
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

6. 3. Investor’s Page (Tax & PV Discount Rates)
• Video 3:21 Minutes
• Click on the 'T' button next to General Vacancy & Credit Loss
• Tax Rate First Year - Federal “35” State “9.3”
• Tax Rate Following Years - Federal “35” State “9.3”
• Capital Gain Rate - Federal “20” State “0”
• Cost Recovery Recapture Rate - Federal “25” State “0”
• Click Paste to paste the Tax Rates.
• General Vacancy & Credit Loss “0”
• Present Value Discount Rate Before Debt - “10”
• Present Value Discount Rate Before Tax - “10”
• Present Value Discount Rate After Tax - “10”
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

7. 4. Adding Depreciation (For after tax analysis)
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• Video 2:30 Minutes
• Page Title - “Building”
• Depreciable Amount - “83”
– (Any number less than 100 is a % of the Price)
• Depreciable Life - “27.5”
– (Residential 27.5 / Commercial 39)
• Leave all the other default values as is.
planEASe permits you to enter any life or method so you can
depreciate any type of item. If a property you are analyzing
has more depreciable items than this tutorial, you can repeat
this Edit/Add Page process until all depreciable items are
entered. Check the Audit Window at the bottom left of the
screen to view the cash flows you have just entered. It should
look as shown here. The smaller value in the first (and last)
year is due to application of the IRS’s “half-month” rule.
Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

8. 5A. Revenues (Group Units by Type ~ Multiple income streams)
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Video 5:50 Minutes
• Type “One Bedroom Units” in Page
• Click on the 'C' button next to Annual Revenue.
• The pop up Calculator will appear, and can be configured to operate
in Unit or SqFt mode, with rates entered as Months or Annual.
:
• Units - “10”
• $ / Unit / Mo - “1000”
• SqFt / Unit - “650”
• and click Paste to paste the calculation into the Annual Revenue.
• Revenue Growth Method Select Annual (@ %> Inflation)
• Revenue Growth Rate “0” (at the Inflation Rate)
• Management Fee “5”
• Vacancy Factor “3”
This completes the One Bedroom Units revenues. The rents are growing
at the inflation rate (4%).
Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

9. 5B. Revenues (Group Units by Type ~ Multiple income streams)
Video 5:50 Minutes
Click on Edit/Add Revenue Page on menu bar. A new Revenue Assumption Page appears for you to input more
revenues. You can enter as many Pages as you desire.
• Page Title - “Two Bedroom Units”
• Revenue Growth Method - Select Annual (@ %> Inflation)
• Revenue Growth Rate - “0” (at the Inflation Rate)
• Vacancy Factor - “6”
• Management Fee - “5”
• Click on the 'C' button next to Annual Revenue:
• Units - “32”
• $ / Unit / Mo - “1200”
• SqFt / Unit - “750”
• click Paste to paste the calculation into the Annual
You have now completed the Two Bedroom Units revenues. Look at the Assumption Page List to top right and you
will see Rev One Bedroom Units and Rev Two Bedroom Units now appear in the list. Ensure your Audit Window
appears as shown here. These units are growing at the inflation rate (6%) annually.
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Revenue.
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

10. 5C. Revenues (Group Units by Type ~ Multiple income streams)
Click on Edit/Add Revenue Page on menu bar. A new Revenue Assumption Page appears for you to
input more revenues. You can enter as many Pages as you desire.
• Page Title - “Laundry”
• Annual Revenue - “3600”
• Revenue Growth Method
Video 5:50 Minutes
– Select Annual (@ %> Inflation)
• Revenue Growth Rate - “0”
– (at the Inflation Rate)
• Vacancy Factor - “5”
• Management Fee - “5”
You have now completed the Laundry revenue. Look at the Assumption Page List to top right
and you will see Rev One Bedroom, Rev Two Bedrooms, and Laundry now appear in the list.
Ensure your Audit Window appears as shown here. These units are growing at the inflation rate
(5%) annually.
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

11. 6A. Expenses (Multiple expense items)
• Video 5:22 Minutes
• Page Title - “Property Taxes”
• Annual Expense - “1.2”
– (1.2% of Property Price)
• Expense Growth Method
– Select Annual(@ Growth Rate)
• Expense Growth Rate - “2”
• Leave all the other default values as is.
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This completes the Property Tax Expense Assumption Page. Taxes are
growing at 2% - selecting Annual (@ Growth Rate) for the Expense Growth
Method and entering 2% for the Expense Growth Rate will increase the
expense every Jan by 2%. Check the Audit Window at the bottom left of
the screen to view the cash flows you have just entered. It should look as
shown here. Look to the top right Assumption Page List and you will see
Exp Property Taxes is now on the list.
Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

12. 6B. Adding Expenses (Multiple expense items)
Click on Edit/Add Expense Page on menu bar, then type in specifications below for each expense
page listed below. Select Annual@%>Inflation for each expense leaving the Expense Growth Rate at
the "0" default except for “Utilities".
• “Insurance” Annual Expense “9000”
• “Pool” Annual Expense “2400”
• “Gardener” Annual Expense “1000”
• “Utilities” Annual Expense “7200”
– Expense Growth Rate “2”
Video 5:22 Minutes
• “Resident Manager” Annual Expense “10000”
• “Maintenance” Annual Expense “5000”
• “Reserve” Annual Expense “5000”
• “Miscellaneous” Annual Expense “1000”
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

13. 7. Loans (Debt Coverage Ratio or Loan to Value)
• Video 2:40 Minutes
• Page Title - “USA BANK”
• Loan Amount - “80” % LTV or "1.2" DCR
– (Whichever is lower)
• Loan Interest Rate - “8”
• Original Loan Period - “20”
• Loan Points Charged - “1”
• Leave all the other default values as is.
Your loan is now entered into your planEASe analysis. The Loan Amount can be entered in
three different ways; as a dollar amount (any amount over 100) as a percentage of the
price/loan to value (any number between 3 and 100) as done with “80” here as a debt
coverage ratio (any number less than 3 will be a DCR based on the NOI the year the loan
starts) Additional loans can be entered the same way when needed in an analysis. Check the
Audit Window at the bottom left of the screen to view the loan you have just entered. It should
look as shown here. Of course, the number of loans for a property is unlimited.
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

14. 8. Adding Capital Spending (Enter a cost item with a 5 year life Straight Line
using the Half Year rule.)
Click on Depr Building in the Assumption Page List to the top right, then click on Edit/Add Depreciation Page on menu
bar. Remember how you added more Revenue and Expense Assumption Pages? You use the same steps to add
more Depreciation Assumption Pages.
• Page Title - “Refrigerators”
• Depreciable Life - “5”
• Expenditure Date - “6.16”
• Depreciable Start Date - “6.16”
Video 3:10 Minutes
Assuming the refrigerators will be purchased 5 months after
the building is acquired (on 1 June 2005) so the dates have to
be changed from the acquisition default date.
Click on 'C' next to Depreciable Amount to bring up Calculator,
type in the following specifications, then click Paste.
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
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• Units - “42”
• $ / Unit - “550”
Verifying Your Entries - Click on Basic button to bottom right. When the
Basic Analysis screen appears, choose the Vertical view (at the bottom
right of the screen). When done, click on Exit.

15. 9. Adjustment Time - Sensitivity Analysis (Vary assumptions for 'What If's')
• Video 7:24 Minutes
• You can vary any assumption that you entered, and see
the resulting returns or ratios. Just to get you started here
are a few to do.
• Click on Sensitivity button to bottom right. You are now in
Sensitivity Analysis. You are going to vary the price of the
property and see how it affects the IRR After Tax.
• Click on Price of Property to top left, then click on Rate of
Return After Tax (IRR) to bottom left. Type in the
specifications below, and press the Run button. Starting
at “5500000" Stopping at “6000000" In Steps of “50000”
• You will see planEASe calculates the Price of Property
versus Rate of Return After Tax for the values you
entered. The After Tax IRR takes all the assumptions over
the 10 year holding period into account. All assumptions
that are link to the Price of Property (like Closing Costs
and the Depreciation Amount) are changing at the same
time.
• Click on Another to Top right. Click on Price of Property to
top left, then click on Net Capitalzation Rate to bottom
left. Go ahead and do a few more, the video will give you
more examples.
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc

16. Suggested Reports for Unit Investments
For presenting you can create a website from the analysis very quickly
by selecting File/Publish to Web, and then email the URL to your
selected audience.Alternativly you can printout as paper or to a PDF
print driver, individual reports or packages that you create. Here is a list
of some of the reports:
• APOD Video 4:45 Min
• Detail and Basic Analysis Video 3:05 Min
• Acquisition Report Video 0:55 Min
• Sale Report Video 2:35 Min
• Proforma Income Statement Video 10:35 Min
• Rent Roll Report Video 1:40 Min
• Annual Statements Video 1:42 Min
• Assumptions Report Video 2:20 Min
• Title Pages Video 1:37 Min
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Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
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17. www.planease.com
Analyze the cash flow for investments like Apartments, Self-Storage, Mobile
Home Parks, Marina Slips, Multi-Family, etc
Extra Videos
• Adjustable Loans Video 3:15 Minutes
• Compare Loans Video 3:43 Minutes
• Compare Investments Video 1:47 Minutes
• Combine Investments Video 2:45 Minutes