100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
REE VA & Math Questions and Solutions | Grade A+ $13.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Real Estate REE3043
  4.  
  5. Real estate REE3043

Exam (elaborations)

REE VA & Math Questions and Solutions | Grade A+
 0 purchase
  • Course
  • Real estate REE3043
  • Institution
  • Real Estate REE3043

A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,...

[Show more]

Preview 3 out of 30  pages

Document information

  • June 11, 2024
  • 30
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • ree va math questions and solutions grade a

Written for

  • Real estate REE3043
All documents for this subject (10)

Seller

avatar-seller
TestTrackers

Reviews received

Content preview

REE VA & Math Questions and
Solutions | Grade A+


A property is being appraised using the income capitalization approach. Annually, it has an

estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating

expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded

up to the nearest $1,000)?


✔️: $368,000




A sale transaction on rental property closes on December 10th. The landlord received the

December rent of $4,400 on December 1. Assuming the closing day is the seller's, and that

the 360-day method is used for prorating, how much will the seller owe the buyer?


✔️: $4,400 ÷ 30 days = $146.66 per day; $146.66 x 10 = $1,467, $4,400 - $1,467 = $2,933




If a buyer purchases 25% of a lot in the spring and then purchases 50% more later in the fall,

what percentage of the lot is still available for purchase?


✔️: 25%




Explanation:

25% + 50% = 75%. 100% - 75% = 25%.

,A building generates $103,000 in effective rental income and $900 in vending machine

income. The same complex has $40,700 in operating expenses and $36,000 in debt service

payments. What is the pre-tax cash flow of the complex?


✔️: $27,200




$103,000 effective rental income + $900 vending machine income = $103,900; $103,000 -

$40,700 expenses -= $63,200 NOI; $63,200 NOI - $36,000 debt service = $27,200 pre-tax

cash flow




Two parcels of land priced at $1,200 per acre were purchased. One parcel was 15 acres in

size and the other was 1 mile square in size. How much did these two parcels cost together?


✔️: $786,000




A property currently valued at $450,000 is expected to appreciate 8% each year for the next 3

years. What will be its appreciated value at the end of this period?


✔️: $566,870




$450,000 x 1.08 x 1.08 x 1.08 = $566,870. The 1.08 comes from adding the 8% appreciation

to 100% for 108%. Then convert that to a decimal, 1.08 and multiply as needed.

, $450,000 x 1.08 x 1.08 x 1.08 = $566,870. The 1.08 comes from adding the 8% appreciation

to 100% for 108%. Then convert that to a decimal, 1.08 and multiply as needed.


✔️: $5,187 x 2 sides = $10,374 total commission; $10,374 ÷ 0.065 = $159,600 sales price




If one discount point costs the borrower 1% of the loan amount, and increases the lender's

yield by 1/8th of one percent, how many discount points must be purchased to lower the

interest rate by 1%?


✔️: 1/8th = 0.125; 1.0 ÷ 0.125 = 8




A five-sided lot has the following dimensions: side A = 44', side B = 67', side C = 91', side D

= 18', and side E = 55'. What is the perimeter of the lot?


✔️: 275 feet




44' + 67' + 91' + 18' + 55' = 275'




An FHA-insured loan in the amount of $57,500 at a 6 ½% interest rate for 30 years was

closed on March 17. The first monthly payment is not due until May 1. If the interest is paid

monthly in arrears, how much pre-paid interest does the buyer owe at closing? (Use a 360-

day year)


✔️: $145.32

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller TestTrackers. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$13.99
  • (0)
Add to cart
Added