Test 10 PSI: real estate math! Flashcards

Test 10 PSI: real estate math! Flashcards

• An apartment owner paid 500,000 for complex five

years ago. An appraiser that time value the land at $100,000, the land has appreciated 25% over this period.The investor has used a 40-year straight line depreciation method to depreciate the property. What is its current value using the cost approach?

$475,000

• A property is being appraised by the cost approach.

The appraiser estimates the land is worth $40,000 in the replacement cost of the improvements are $175,000. That all depreciation from all causes is $27,000. What is the indicated value of the property?

$188,000

• Mac is buying Roy's house for $500,000. Max loan

amount is $325,000. He has agreed to pay 1.5 points at closing. How much will Mac pay for points?$4875

• If gross income on a property is $75,000, net income is

$30,000 in the cap rate is 8%, the value of the property

using the income capitalization method is:

$375,000

• Jose recently obtained a 90% loan on his $410,000

home, and he had to pay $6150 for points. How many points did he pay?

1.67 points

• An office building investors sees a listing of an office

building which is priced at two million dollars. He loves the property, but he knows he needs to make a return of the leased 8% to satisfy his partners. If the building is 25,000 square feet, rents for $10.00 per square foot per year, has a 5% vacancy, an annual expenses of $70,000, should you buy it? What is his return?Yes, since he will yield 8.375%

• Lee had to report his home office to preach a shun for

the tax year. He hadn't with 1500 square foot home and a 500 square foot office area. Lee paid $280,000 for his home, and he figures the LAN portion Carries about 25% of that value. If we'd appreciate son of 39 your basis, how much can he write off for his home office depreciation per year?$1077

• A rental home has a gross income of $1100. A suitable

gross income multiplier derived from market data is 14.7.What estimated sale price to the nearest $1000 is indicated?

$194,000

• An investor but for resized loss in order to subdivide.

He paid $70,000 for the lots. After some dividing the investor was able to sell each lot for $23,000. Excluding

commissions and closing costs, what percent profit did the investor realize?

31.4%

• Calculate how many acres in the southwest and quarter

of the western half of the eastern half of section nine.40 acres

• A homeowner wants to insulate the new recreation room

in a basement. She is just been told that 3 inches of insulation would do the job. The balls are all 9' high respectively a measure 13 feet, 13 feet, 18 feet 18 feet in length. How many roles was she need of each roll measures 3 inches by 2 feet by 50 feet?Six

• A school district's tax rate is 10 mills. The school

district's required revenue from taxes is $10,000,000. What is the tax base of the area?One billion dollars. That is,1,000,000,000

• Seller frank receives an offer of $290,000 on a property

he listed at $308,000. How much is the offer as a percent of the listed price?94%

• The loan officer at six 4th bank tells a bed a she can

afford a monthly payment of $1000 on her new home loan.Assuming this is an interest only loan, and the principle balance is $249,000, what interest rate is Amanda getting?

4.82%

• A property is being appraised using the income

capitalization approach. Annually, it has a potential gross income of $30,000, vacancy in credit losses of $1500, and operating expenses of $10,000. Using a capitalization rate of 9%, what is the indicated value, to the nearest $1000?

$206,000

• Yard of pizza a percentage lease on its 1800 square foot

space in Lincoln shops. The terms are $1.40 per square foot per month rent plus 1.75% of the store's gross income.If monthly sales averaged $41,500 last year, how much annual rent did Yard of pizza pay last year?

$38,955

• Amy obtains a 75% loan to value loan on her new

$200,000 home with an annual interest rate of 6%. What is the first months interest payment?$750

• Kevin, who works for selling broker Paul, sells a house

listed by listing broker Adams. The house sells for $325,000. The co brokerage split between Paul and Adams is 5050. Cam and is on a 65% commission schedule with Paul. If the total commission rate is 6.5% what is canvas commission?$6866

• A homeowner paid $185,000 for a house three years

ago. The house sells today for 239,000. How much as the property appreciated?29%

• An investor paid $80,000 for a lot and $600,000 to have

an apartment building constructed on it. He has depreciated the property for the past 10 years on a 39 SP year straight line schedule. If he sells his property this year and realizes $780,000, what is his capital gain?

$253,846

• A homeowner's residence has an assessed valuation

$140,000, and a market value of $170,000. The homestead

exemption is $25,000. Tax rates for the property are seven mills for schools; three Males for the city; two Males for the county, and one mill for the local community college. What is the homeowner's tax bill?$1495