Additional Work Problems
1. Develop an overall rate based on the
following: .7 LV ratio, 6% rate=
, 15
yrs, monthly payments, Equity rate: 10.5%
2. Extract an equity rate from the follow=
ing
data: .65 LV
ratio, 6.5% rate, 12 year amortization, monthly payments. Overall rate: .09=
5.
3. If overall capitalization rates are go=
ing
down, what is probably happening to investor attitudes about the market?
4.
As a property ages, with normal maintenance and management, the
operating expense ratio typically goes _______________.
5. If the EGIM is 6 and the operating exp=
ense
ratio is .45, what is the overall rate?
6. What is the annual constant at 7.5%, 20
years, semi-annual payments?
7. What annual payment is required to rep=
lace
a roof in 5 years at projected cost of $20,000 at an interest rate of 4%?
8. What is the value of a leased fee inte=
rest
with level income of $50,000, a reversion of $450,000, at a discount rate of
10%
9. What is the
Potential Gross Income Muliplier with a sales p=
rice
of $450,000 and a potential gross income of $50,000. Vacancy is 10%.
10. What is the overall rate if NOI is
$100,000 and the sales price is $1,250,000?
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11. When the overa=
ll
cap rate for a property is lower than the overall yield rate, what is happe=
ning
in the market?
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12. How is the management fee us=
ually
calculated, as a percentage of gross potential income or as a percentage of
effective gross income?
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