The Importance Of Operating Budgets And Planning For CapEx In SFR Investing

Whether you are considering your first single-family rental investment or you already have a large portfolio, it is standard practice to prepare a pro forma budget when analyzing a deal. A pro forma is used to project income and expenses, and while it includes most of the elements of an operating budget, the two function differently.

Pro formas are critical to analyzing a deal and are used to develop exit strategies and help establish the price a buyer will be willing to pay.