Need to Know Formulas Flashcards
1
Q
Net Operating Income (NOI)
A
Value x ROR = NOI
2
Q
Cap Rate
A
(Bldg Value)(Cap Rate) = NOI
3
Q
Assessment of Property Value
A
Mrkt Value x RofA = Assessed Value
4
Q
Depreciation
A
(Cost of Property – Cost of Land) / Number of Years
5
Q
Net to Seller
A
Net = %
Broker Fee = %
Salesprice = Always 100%
6
Q
Loss Factor
A
Rentable – Usable = Loss Factor
Rentable – Loss = Efficiency Factor
7
Q
Cash on Cash Return (CoCR)
A
$$ Coming in (1 Year) / $$ Out of Pocket = CoCR %
8
Q
Mortgage Qualification
A
Monthly Salary x Ratio = Mortgage
9
Q
Area Formula
A
Length x Width = Area
10
Q
Triangle Area Formula
A
(Base x Height) / 2
11
Q
Acreage
A
1 Acre = 43,560 Square Feet
1 Sq Mile = 640 Acres
