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Income Tab

 

Applies to: Data Entry View/Income Tab


 

Data Entry View - Income Tab

Click on the Income tab near the top of the Data Entry view to enter income and expense information for a property.  

 

Many Options

Commercial Complete can assist in developing the value by the Income Approach, whether you will be performing a simple Stable analysis or a complicated Lease by Lease analysis.  The capitalization rate can be entered (Direct Cap Rate) or developed using the Advanced Mortgage Equity Technique. 

 

Basic Income/Expense Tab - Learn More

When the Income tab is clicked, several tabs and buttons are displayed and the Basic Income Expense tab is highlighted in Yellow. Income and expenses for most properties can be entered on the Basic Income/Expense tab. 

 

If you will be performing a Stable analysis and applying a Direct Cap Rate, all information can be entered here.  If you will be employing the Mortgage Equity Technique to develop the capitalization rate, switch to the Mortgage Equity tab to do that, before or after entering the income and expenses.

 

To perform more complicated income analyses with multiple tenant and expense variations, passthroughs, CAM, etc., use the Advanced Mortgage Equity, Advanced Income, and Advanced Expense buttons that are displayed above the Basic Income/Expense tab.

 

Income and Expense Summary Tabs - Learn More

When you must create reports that provide more information than the typical Income Statement and Rent Roll, the Income and Expense Summary tabs are perfect for the task.

 

First enter the income and expenses on the Basic Income/Expense tab.  These items will then be listed on the left side of the Income Summary tab and Expense Summary tab respectively.  On these tabs you can provide brief or detailed descriptions of each income and expense item and discuss Renewal Options, Expense Responsibility, etc.  Reports are available that will present the information in various ways.

 

Mortgage Equity Tab

The capitalization rate, using the Mortgage Equity Technique or the Band of Investment can be developed on this tab. Other information is presented in this window that is especially useful when analyzing comparables.  Multipliers are calculated and the yield rate of a comp can be easily extracted.  You will often use the Mortgage Equity tab to enter the income and expenses of the comparable, rather than the Basic Income/Expense tab.

 

The information entered under Quick Data Entry will be used to calculate several multipliers and the direct cap rate.  If this property is later used as a comparable in a Comparison Analysis, these multipliers will be used in various grids that are available.  Once line item income and expenses have been entered , the income and expense fields under the Quick Entry Data column can no longer be edited.  Instead, the information entered on the Basic Income/Expense tab, the Advanced Income Screen, or the Advanced Expense Screen is shown and changes must be made on these screens.

 

The Worksheet Variables can also be changed on the Mortgage Equity tab, with the exception of the Analysis Type, which must be changed by clicking the Advanced Mortgage Equity button.  For a more thorough explanation of each field, click on the links below.

 

Reference No./File ID, Analysis Date, Analysis Type, Loan Ratio, Loan Term, Loan Interest Rate, Loan Balloon, Growth Rate -Value, Growth Rate-Net Income, Soft Costs, Sales Costs, Holding Period, Required Yield, Indicated Value, Terminal Cap Rate