Multi Family Definitions
Scheduled Gross Income – This is for the total annual revenue that the multi family can generate when fully occupied.
Vacancy Allowance – This is the historical vacancy rate for the multi family building. i.e. An average annually of 1 unit of a 4 family is vacant 2 months a year. The vacancy allowance is the monthly rent times two.
Gross Operating Income – This is simply the Gross Income minus the Vacancy Allowance.
Total Operating Expenses – This is all annual expenses for the building. i.e. Annual Real Estate taxes, grass cutting, snow plowing, landlord care of common areas, common utilities. Note that this does not include the buyers costs to finance the purchase of the building.
Total Operating Income – This is Gross Operating Income minus Total Operating Expenses.
DILHR – This is answered “Y” for yes, or “N” for no. This represents whether the property has been inspected and DILHR certified for the Wisconsin Rental Weatherization Program. This inspection is performed by a DILHR certified inspector in conjunction with the normal property inspection, identifying that the property conforms to minimum energy conservation standards at the time of ownership transfer. Once a rental unit has earned a DILHR certificate, it can be transferred automatically from owner to owner, without another inspection.