Exam (elaborations)
REE 4103 FINAL EXAM (1)
- Course
- Institution
REE 4103 FINAL EXAM (1)
[Show more]
Seller
Follow
topgradesdr
Reviews received
Content preview
REE 4103 FINAL EXAMRental Data would not include: - ANS-Reproduction costs**
All of the following relate to the rent level or payment schedule of a lease except: -
ANS-Financing of the Property***
All the following are excluded from the reconstructed operating statement except: -
ANS-• Excluded
o Mortgage loan interest payments, book depreciation, business tax, capital
costs/improvements• Included
o Management charges
o fixed-taxes & insurance
o variable: management, utilities, maintenance
o replacement allowance**
When the landlord permits the tenant occupancy and use of the space each year for a
fixed amount of money, the lease is described as - ANS-Fixed lease**
Which approach would probably be given the most weight in appraising a large office
building? - ANS-Income approach**
Which principle of value best affirms that value is the present worth of expected future
benefits? - ANS-Anticipation**
The appraisal approach that normally would be most useful in valuing investment
property is the: - ANS-Income approach**
Value is said to be the present worth of future benefits. This defines the principle of -
ANS-Net Present Value**
A lease with the following annual payments: Year 1: $10,000 Year 2: $12,000 Year 3:
$14,000 Year 4: $16,000; would be called what type of lease? - ANS-Step-up lease**
The lump-sum benefit an investor receives upon termination of an investment is called -
ANS-Reversion***
An allowance for vacancy and collection loss is estimated as a percentage of -
ANS-Potential Gross Income*
, The anticipated income that remains after deducting all operating expenses from
effective gross income but before mortgage debt service is - ANS-Net Operating
Income*
A _______________ would have the lowest ratio of operating expenses to gross
income incurred by the landlord - ANS-Retail and Industrial properties*
The operating expense ratio for income property is typically - ANS-complement of the
Net Income Ratio*
In determining income and expenses the first step is - ANS-a lease and rent analysis*
Effective gross income is income after an allowance for - ANS-vacancy rates.*
In a high rise 100-unit apartment building there is a basement laundry area that brings
in $100 monthly from the concessionaire. The laundry income is - ANS-Would
commonly be included as a miscellaneous income and added to the potential gross
income.**
In an appraisal of income property, which of the following items should be excluded from
the expense statement? - ANS-Depreciation***
Overage rent is - ANS-Percentage rent paid over and above the guaranteed minimum
rent or base rent; calculated as a percentage of sales in excess of a specified
breakpoint sales volume***
A small office building sold for $120,000. The monthly net operating income is $1,300
per MONTH. What was the overall capitalization rate? - ANS-V = I / R
V = 120,000
NOI = 1,300 * 12 = 15,600
V = I / R so
R = NOI / V ****
Painting and redecorating of an apartment unit is a(n): - ANS-operating expense***
A reconstructed operating statement for an owner operated property should include -
ANS-Vacancy and collection loss: EGI, operating expenses, fixed expenses, variable
expenses, replacement allowance, total operating expenses, NOI, additional calculation,
expense and income ratios**
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 topgradesdr. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71184 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now