Real Estate Principles II Math Flashcards
adjusted basis
(investment property)
basis + cost of improvements + qualified closing costs – realized depreciation = adjusted
basis (investment property)
adjusted basis
(primary residence)
basis + cost of improvements + qualified closing costs = adjusted basis (primary residence)
annual interest
principal x interest rate = annual interest
area (square footage)
length x width = area
area of triangle
1/2 x base x height = area
asking price
square footage x price per square foot = asking price
assessed value
full market value x uniform percentage = assessed value
capital gain
realized gain – adjusted basis = capital gain
converting square
footage to acreage
square footage ÷ 43,560 square feet per acre = acres
cost per point
total cost of points ÷ number of points = cost per point
depreciation (%)
age of property ÷ total useful life = depreciation (%)
depreciation cost ($)
reproduction cost x depreciation (%) = depreciation cost ($)
discount point fees
principal balance x loan points = discount point fees
down payment ($)
amount given leverage
sales price x down payment (%) = down payment ($)
effective gross income
gross potential income - vacancy cost = effective gross income (EGI)
gross rent multiplier
property price ÷ annual rent income = gross rent multiplier (GRM)
gross rental income
monthly rent + other income = gross rental income
loan principal given
cost per point
cost per point x 100 = loan principal
loan-to-value ratio
(leverage)
loan amount ÷ purchase price = loan-to-value ratio
max monthly payment
(back-end)
monthly income x debt-to-income ratio - other debt = monthly payment
max monthly payment
(front-end)
monthly income ÷ payment-to-income ratio = monthly payment
month 2 balance
original principal balance – P1 = month 2 balance
monthly income required
to make a given front-
end payment
monthly payment ÷ payment-to-income ratio = monthly income
monthly interest
annual interest ÷ 12 months = monthly interest
monthly interest
payment
interest rate x principal balance ÷ 12 months = monthly interest payment
net lease rent
fixed rent + property expense(s) = net lease rent
net operating income
EGI - operating expenses = net operating income (NOI)
occupancy rate
occupied units ÷ total units = occupancy rate
part
total x percentage = part
payment-to-income
ratio (front-end or
housing expense ratio)
monthly payment ÷ monthly income = payment-to-income ratio
percentage
part ÷ total = percentage
percentage lease rent
fixed rent + (overage x sales rate) = rent
portion of first
payment going towards
interest
(interest rate x principal balance) ÷ 12 = I1
portion of first
payment going towards
principal
monthly payment – I1 = P1
portion of second
payment going towards
interest
(interest rate x month 2 balance) ÷ 12 = I2
portion of second
payment going towards
principal
monthly payment – I2 = P2
price per square foot
asking price ÷ square footage = price per square foot
projected gross income
contract rent ÷ projected rent = projected gross income (PGI)
property tax savings
total exemptions x tax rate = property tax savings
property taxes
tax rate x assesed value = property taxes
property taxes
taxable value x tax rate = annual property taxes due
property value
reproduction cost - depreciation + land value = property value
proration
item cost x portion of cost party is responsible for = amount charged to given party
quarterly interest
annual interest ÷ 4 = quarterly interest
realized gain
sales price – selling costs = realized gain
sale price with VA
entitlement
sale price - down payment = 4 x (entitlement + down payment)
special assessment
total special assessment cost x homeowner’s share = special assessment
street paving
assessment
[(front feet x amount per linear foot) x owner percentage] ÷ 2 = street paving assessment
tax base
total assessed value – total exemptions = tax base
tax rate
tax requirement ÷ tax base = tax rate
total
part ÷ percentage = total
taxable value
assessed value – homestead exemptions = taxable value
total cost of points
loan points x loan principal = total cost of points
total debt-to-income
ratio (back-end ratio)
monthly income ÷ total monthly debts = DTI
total interest paid
total loan cost – original loan principal = total interest paid
total loan cost
monthly payment x number of payments = total loan cost
value (IRV)
net operating income (I) ÷ capitalization rate (R) = value (V)
variable lease rent
(new index ÷ original index ) x original rent rate = new rent rate
volume
length x width x height = volume
