Exam (elaborations)
Ree 4103 unit 3 quizzes Questions with 100% correct answers | verified | latest update 2024
- Course
- Institution
Ree 4103 unit 3 quizzes Questions with 100% correct answers | verified | latest update 2024
[Show more]
Seller
Follow
AnswersCOM
Reviews received
Content preview
Ree 4103 unit 3 quizzesA gross lease is one that:
Tenant pays for all operating expenses
Landlord pays for all operating expenses
Applies only to commercial properties
Rent rises with the cost of living - ANS-Landlord pays for all operating expenses
A lease on a 8,000 square foot industrial building, where the rent is specified as
$3,500/month, for a 5-year term with level income throughout the lease term. When the
lease was negotiated, the tenant received free rent for the first month of each year as a
concession. What is the effective rent per square foot per year?
$7.28
$2.18
$39.75
$4.81 - ANS-$4.81
A property has potential gross income of $30,000, effective gross income of $27,000,
and operating expenses of $8,100. What is the operating expense ratio?
10%
25%
27%
30% - ANS-30%
, A property sold for $555,000. The buyer anticipated the potential gross income would
be $93,000, the vacancy would be 5%, and expenses would be 53% of EGI in the year
after the purchase. What is the overall capitalization rate (RO)?
7.48%
6.78%
10.35%
11.83% - ANS-7.48%
A small office building sold for $120,000. The monthly net operating income is $1,300
per MONTH. What was the overall capitalization rate?
9.2 percent
15.29 percent
11.14 percent
13 percent - ANS-13 percent
All are used in valuation of income-producing property except:
Rental rates
Operating expenses
Income taxes
Net leasable area - ANS-Income taxes
An allowance for vacancy and collection loss is estimated as a percentage of:
Net operating income
Before tax cash flow
Effective gross income
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 AnswersCOM. 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)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
Recently viewed by you
