Having obtained net operating income, the Template calculates the yearly debt service and cash flow for the project and displays the results in the following fields:

• First Mortgage Debt Service, which is the amount of debt service paid out yearly toward your first mortgage. The amount is calculated using the information provided on the first mortgage in the Financing Sources tab. When the project is sold, first mortgage debt service ceases. Annual debt service are calculated assuming a series of 12 monthly payments.
  
  
• Second Mortgage Debt Service, which is the debt service paid out each year toward the second mortgage. It is calculated using the information provided on the second mortgage in the Financing Sources tab. Since the first mortgage and second mortgage are typically taken out at the same time, the Years to Sale entered for the first mortgage on the Financing Sources tab determines the year in which this occurs. When the project is sold, second mortgage debt service ceases. Annual debt service are calculated assuming a series of 12 monthly payments.
  
  
• Deferred Payment Loan Payoff (1 and 2), which represents the amount paid by the project owners to pay off the deferred payment loan. Since the first mortgage and deferred payment loan are typically taken out at the same time, the Years to Sale entered for the first mortgage on the Financing Sources tab determines the year in which this occurs.
  
  
• Custom Loan Debt Service 1 and 2, which is the debt service paid out each year toward your custom loans. The amount of each yearly payment was entered on the Custom Loans tab.
  
  
• Cash Flow, which is the amount of income remaining after all debt service has been paid.
  
  
• Proceeds from Property Sale, which is an estimate of the project's market value in the year it is sold (entered as Years to Sale on the Financing Sources). If you entered a dollar figure into the Value of Project at Sale field on the Financing Sources tab, that amount will appear as your proceeds from property sale. If you did not enter a dollar figure into the Value of Project at Sale field, then the Template will calculate a value for you based on the capitalization rate.
  
  
• Net Cash Return, which is the sum of the cash flow and proceeds from property sale. Net cash return, along with the amount of equity invested in the project, is used to calculate the projected return on equity for the project.