Math Formulas

Question 1

Property Tax

Answer 1

Appraised Value
X   Assessed Rate
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
     Assessed Value
X   Tax Rate
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
     Taxes Due

Question 2

Net Operating Income

Answer 2

Gross Income
- Expenses
____________________
Net Operating Income (annual)

Question 3

Cap Rate (Rate of return)

Answer 3

Value (“Falue”)
X Cap Rate
____________________
Net Operating Income (NOI)

Question 4

Income Tax (Investment Property)

Answer 4

Adjusted Cost Basis =

Cost + Improvements - Depreciation

Question 5

Income Tax (Capital Gains)

Answer 5

Adjusted Selling Price*
- Cost Basis (what you bought it for)
- Cost of Selling
- Improvements
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Capital Gains

*You can only lower the selling price by the amount of “fix up” expenses incurred within the 90 days prior to accepting the offer.

Question 6

F R L

Answer 6

100%   F $                   (First)
            R                    % (Rate)
            \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
            L $                    (Last)
1. What did you do?
2. What came first?
3. How much was it (first thing)?
4. What came last?
5. How much was it (last thing)?
6. What rate is equal to L (last thing)?

Question 7

AREA

Square feet, square miles, etc.

Answer 7

Length X Width = Area

For triangular shape, L x W / 2

Question 8

LTVR

Loan To Value Ratio

Answer 8

Note: use the total of all loans

Loan / Value = LTVR (a %)

Question 9

GRM

Gross Rent Multiplier

Answer 9

Selling Price / Gross Rents = GRM

Question 10

1 yard =

1 square yard =

1 cubic yard =

Section =

Answer 10

1 yard = 3 linear feet

1 square yard = 9 square feet

1 cubic yard = 27 cubic feet

Section = 1 square mile

Question 11

1 acre =

1 mile =

Section = (acres)

Township =

Answer 11

1 acre = 43,560 square feet

1 mile = 5,280 feet

Section = 640 acres

Township = 36 square miles