The Income & Expenses page is the foundation for your real estate underwriting in Cactus. It combines automation with full customization—letting you pull numbers directly from uploaded financials or override them with your own business plan. You can model stabilized assets, value-add scenarios, or even new developments in minutes.
And now with multi-phase value-add support, you can go even deeper.
🔍 What This Page Lets You Do
Feature | Description |
Gross Potential Rental Income (GPRI) | Pulled from unit mix (auto), financials, or OM—or entered manually as Total, Per Unit, or Per SF |
General Vacancy & Loss to Lease | Deducted from GPRI to calculate Effective Gross Rental Income (auto pulled from financials/OM if available) |
Supplementary Income | Add additional income streams like parking, vending, late fees |
Operating Expenses | Enter as a % of EGI, Total $, or detailed breakdown (auto pulled from financials/OM if available) |
CAPEX Reserve | Default set to 2% of EGI, but customizable in your template |
Growth Inputs | Apply annual growth assumptions for revenue & expenses (default 3%, editable) |
Value-Add Planning | Add multiple value-add strategies, each with a specific year of impact to layer your business plan into the pro forma |
🧭 Step-by-Step Guide
1. Set Gross Potential Rental Income (GPRI)
Choose how to calculate GPRI using the dropdown:
Unit Mix (auto): Pre-fills using current and market rents
Total / Per Unit / Per SF: Use if you’re overriding with a top-down approach
📄 If a financial statement or OM has been uploaded, Cactus will auto-fill what it can.
2. Adjust for General Vacancy & Loss to Lease
Cactus pulls these if available from your financials or OM. You can always override with your own assumptions.
They reduce GPRI to calculate your Effective Gross Rental Income.
3. Add Supplementary Income
Click “+ Add Supplementary Income” to include items like:
Pet fees
Admin or late charges
Laundry, storage, or parking revenue
This rolls into Effective Gross Income (EGI).
4. Input Operating Expenses
You can enter expenses:
As a % of EGI (default)
Per Unit, Per SF, % of Purchase Price, or Flat Total
Broken down by custom categories (repairs, payroll, utilities, etc.)
📄 Cactus will auto-fill based on uploaded documents if available.
5. Set CAPEX Reserve
By default, this is 2% of EGI, but it can be edited or preset in your custom template.
6. Apply Growth Rates
You’ll find growth inputs at the bottom:
Field | Default |
Revenue Growth | 3% |
Expense Growth | 3% |
You can modify these at any time to match your hold period assumptions.
7. ✅ Add & Layer Multiple Value-Add Plans
A powerful part of this page is the ability to model multiple phases of a value-add strategy, such as:
Rent increases in Year 2
Operating efficiency improvements in Year 3
Supplementary income additions in Year 4
🛠 When adding a value-add adjustment (like a GPRI increase or vacancy improvement), just set the year of impact using the year selector above the "Value Add" column.
Cactus will automatically adjust your cash flows and forecasts based on the timing of each change.
💡 Use this to layer rent bumps, operational changes, or even CAPEX savings across multiple years.
🧠 Pro Tips
Use the “Unit Mix (auto)” option to instantly connect this page with your rent roll
Layer multiple value-add scenarios for accurate projections
Use custom templates to apply your firm's standard assumptions automatically
📘 Summary
The Income & Expenses page in Cactus gives you complete control over your property’s operating performance. Whether you're working from a real OM or creating a new business plan from scratch, this page helps you project income, expenses, and net performance quickly.
With built-in support for multi-phase value-add strategies and year-specific impacts, you can now model deals with more precision—and in way less time.