Developing Business Plan Pro-Forma

[Jared Foster]

Does anybody have tips for building a proforma? I am looking at a market for multi-family properties 5-20 units. My criteria was going to be Cap Rate = 8%, Debt Coverage Ratio = >1.1, and looking for an IRR in the high teens or mid 20%. I have been using loopnet to look over properties and finding that it is hard to determine economics. Either they don't provide, or show a NOI that assumes either higher rent than my research indicates or an OpEx in the 30% range. So my question is should I be building a proforma on the assumptions I listed or from what the market seems to be indicating based on cursory view. Maybe my market research isn't what I tought it was or the sellers want to much for their property. Thanks, JaredF