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Pro-Forma Operating Budget
Project:
# Beds
16
Boston Community Cooperatives, Inc.
Charge Increase
2%
Example Property
Expense Increase
3%
28 Moreland St, Somerville MA, 02145
Vacancy Factor
5%
Income
Year 1
Year 2
Year 3
Year 4
Year 5
Member charges*
118,560.00
120,931.20
123,349.82
125,816.82
128,333.16
Gross Potential Income
118,560.00
120,931.20
123,349.82
125,816.82
128,333.16
Vacancy factor
5,928.00
6,046.56
6,167.49
6,290.84
6,416.66
Total Effective Income
112,632.00
114,884.64
117,182.33
119,525.98
121,916.50
Expenses
Operating Expenses
Repairs/Operating Costs
11,716.80
12,068.30
12,430.35
12,803.26
13,187.36
Property Taxes
9,466.20
9,750.19
10,042.69
10,343.97
10,654.29
Insurance
1,600.00
1,648.00
1,697.44
1,748.36
1,800.81
Utilities
10,560.00
10,876.80
11,203.10
11,539.20
11,885.37
Co-op Education
300.00
309.00
318.27
327.82
337.65
Development Fund
800.00
824.00
848.72
874.18
900.41
Total Operating Expenses
34,443.00
35,476.29
36,540.58
37,636.80
38,765.90
Net Operating Income
78,189.00
79,408.35
80,641.75
81,889.18
83,150.60
Debt Service
71,880.10
71,880.10
71,880.10
71,880.10
71,880.10
Total Expenses
106,323.10
107,356.39
108,420.68
109,516.90
110,646.00
Net Income (Loss)
6,308.90
7,528.25
8,761.65
10,009.08
11,270.50
Debt Service Coverage Ratio
1.09
1.10
1.12
1.14
1.16
* Charges do not include food.
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If it really was a no–brainer to make it on your own in business there’d be millions of no–brained, harebrained, and otherwise dubiously brained individuals quitting their day jobs and hanging out their own shingles. Nobody would be left to round out the workforce and execute the business plan. | Bill Rancic