The starting point in calculating net operating income is the total annual income the property would produce assuming 100% occupancy and no collection losses. This is commonly referred to as Select one: a. capital expenditures. b. effective gross income. c. potential gross income. d. operating expenses.
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Step 1: The question asks what the total annual income a property would produce assuming 100% occupancy and no collection losses is commonly referred to as. Show more…
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Problem #1 An income producing property has a gross rental income of $225,000, vacancy and collection losses of 2.5% of gross income, and annual expenses of $55,000. What is the Net Operating Income (NOI)? If the Capitalization Rate is 9.5%, what is the estimated value of the property based on the income approach? Problem #2 A seller would like to net $100,000 from the sale of their property. Assuming all sales expenses would equal 9% of the sales price, what sales price would result in $100,000 proceeds to the seller?
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QUESTION 11 Which type of account is gross profit? a. An income account b. An expense account c. An asset account d. None of the above - not an account QUESTION 12 Which of the following would NOT be considered an operating expense? a. Rent expense b. Utilities expense c. Interest expense d. Depreciation expense
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Suppose your investor is considering a two-bedroom apartment with maintenance fees of $385 per month, annual property taxes of $1250, and reserves for repairs of $50 per month. The apartment is rented at a monthly rate of $1300. What is the Net Operating Income? Show your math. .2. Suppose your investor is considering purchasing a portfolio of condominiums with the following characteristics: Gross income of $100,000 Vacancy rate of 5% Taxes of $7000 Management fees of $3450 Repairs of $3000. Calculate the Net Operating Income. 3. What is the Overall Capitalization Rate if the sales price is $1.1 million? What is the value of a property if the net operating income is $8000 and the capitalization rate is 8%?
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