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27 Cards in this Set
- Front
- Back
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Capitalization Rate |
NOI/Property Value = Cap Rate |
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Before Tax Cash Flow |
Income - Expenses |
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After Tax Cash Flow |
income - expenses - taxes |
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Cash on Cash Return |
A percentage return on money invested in a property by an investor. Formula: Down Payment / Cash Flow. |
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Net Operating Income |
Equal to the Gross income minus expenses (and sometimes debt service). Also referred to as cash flow. |
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Purchase Price: $2,500,000 NOI: $125,000 Cap Rate: ?? |
Rate: (0.05) NOI/Purchase Price |
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If the capitalization rate on a property is 12%, and the buyer purchases the property using all cash, what is the cash-on-cash return for the buyer…?1. 6%2. 11%3. 12%4. 8.5% |
3. 12% |
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The depreciable basis of an income producing, non-residential property is $840,500. Using the straight-line depreciation method, what is the allowable annual depreciation of the property…?1. $22,646.772. $840,0003. $21,551.284. $30,563.64 |
3. $21,551.28 income/39 for commercial |
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The annual net income for a property is $218,000. If the taxable income is $156,000, what is the allowable annual depreciation of the property…?1. $218,0002. $62,0003. $156,0004. $60,200 |
2. $62,000 allowable annual depreciation: net income - taxable income |
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What is the taxable gain on a property that sold for $450,000 with an adjusted basis of $125,000…?1. $325,0002. $125,0003. $450,0004. $50,000 |
1. $325,000 taxable gain: price sold - adjusted basis |
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What is the taxable gain of a property that sold for $1,100,000 with an adjusted basis of $525,000…?1. $500,0002. $525,0003. $1,100,0004. $575,000 |
4. $575,000tax gain with adj basis tax gain - adjusted basis |
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The property is $250,000 and the amount of annual appreciations 3%. So if the property will increase in value at a rate of 3% each year how much will the property be worth in 3 years? |
Answer: $273,181.75 $250,000 x 1.03 = $257,500 $257,500 x 1.03 = $265,225 $265,225 x 1.03 = $273,181.75 |
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A property at a value of $550,000 depreciates at 5% per year - how much does it depreciate in 3 years? |
Answer: $471,556.25 $550,000 x 0.95 = $522,500 522,500 x 0.95 = $496,375 $496,375 x 0.95 =$471,556.25 |
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Point = what? |
1 point equals 1% |
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Area of Triangle ? |
base x height / 2 |
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Acre? Number square feet? |
43,560 sq ft |
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One square mile is how many Acres? |
640 acres |
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Hector |
10,000 sq meters |
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1 Hector is how many Acres? |
2.471 acres |
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Real estate property transfer taxes |
Typically expressed in dollars per thousand For example:$6/$1,000 of sale price |
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Property Tax |
Assessed Value x TaxRate = Annual Taxes paid on the property |
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A one story house recently sold for $348,000. What is the price per square foot of the house, if the house measures 25′ x 68’…?1. $204.712. $202.793. $196.474. $205.46 |
1. $204.71 |
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What is the mortgage recording tax paid on a property that sold for $215,000, assuming there is a tax rate of $2.05/$100 of the loan amount and the bank uses an 75% LTV…?1. $3,3062. $3,3353. $3,6034. $3,246 |
1. $3,306 |
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In real estate finance, 3.6 points is equivalent to what…?1. 0.036%2. 3.6%3. 36%4. .36% |
2. 3.6% |
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What is the perimeter of a rectangular lot measuring 48′ x 97’…?1. 280'2. 4,646'3. 4,656'4. 290' |
4. 290' |
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How many square meters are in 1 hectare…?1. 10,0002. 43,5603. 6404. 1,000 |
10,000
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43,560 sq.ft. = 10,000 sq. meters = 3.5% = 65,340 sq.ft. = |
1 Acre 1 Hectare 3.5 Points 1.5 Acres |
