Real Estate Financing
Home > Preview
The flashcards below were created by user
on FreezingBlue Flashcards.
What is imputed rent and its formula?
The value of consumption services obtained by owning one's house rather than having to pay rent
- Expected Return = D + G – C,
- D = imputed rental dividend,
- G = inflation-adjusted growth in home value, and
- C = costs (insurance, property taxes, and maintenance)
What are qualitative reasons that affect buy vs. rent
- 1) how long you are staying in a location
- 3) Ask someone, please
What are the types of leases
Flat Rent, Step-Up Rent, Indexed Rent, and Rents dependent on performance,
What is effective rent and how to calculate it.
- A single measure that can be used in comparing leasing alternatives.
- To calc this you must calc the pv of the expected net rental stream. Then calc a equivelant level of annuity equal to the calc rent.
Valuation of Income Producing Properties
GIM(Gross Income Mult.) = sales price/gross income
- Cap Rate = NOI/ price
- *Cap Rate does only insures that you are paying a competitive price for the home.
How to calculate the load factor of a building?
Ex. There are 4 tenants and 20,000 sqft of space. There are 4,500 sqft/tenant, which leaves 2,000 sqft for common space. The load factor would be 20,000/18,000=1.111
What is DCR?
DCR is Debt Coverage Ratio. It is attained by dividing your NOI(usually 1st year)/The mortgage.
What would you like to do?
Home > Flashcards > Print Preview