The rent that can be collected on an annual basis assuming that a property is completely...
The rent that can be collected on an annual basis assuming that a property is completely occupied is
A. Real Returns
B. Potential Gross Income
C. Net Operating Expenses
D. None of the above
Homework Answers
The correct answer is option B. Potential Gross Income.
The annual rent collected forms the top line of the income statement, which is the potential gross income assuming 100% occupancy.
Can you please upvote? Thank You :-)
Add Answer to:
The rent that can be collected on an annual basis assuming that
a property is completely...
10.31 Lessen 10: The Income Approach ASSIGNMENT 10, continued rent is the rental 12. Complete the...
10.31 Lessen 10: The Income Approach ASSIGNMENT 10, continued rent is the rental 12. Complete the following statement: contract rent is the actual rental income specified in a lease and market income that a property would most probably command in the open market. (1) Market, contract (2) Effective, potential (3) Contract, market T4) Net effective, net potential 13. A reconstructed operating statement should include: (1) additions to capital. (2) income tax (3) book appreciation. @ management charges. 14. Which of...
The total annual rental income possible from a property if it were completely leased: The expenses...
The total annual rental income possible from a property if it were completely leased: The expenses necessary to keep a property operating, including property taxes, insurance premiums, and common area maintenance: [Choose ] NOI assessed value insurable value GRM operating expenses appreciation potential gross income cap rate CAM loan value The cost associated with maintaining the common areas of a property such as lobbies, hallways, and parking lots: [Choose] The income stream generated by the operation of the property, after...
You want to purchase an office building in Brooklyn. The property contains 27,500 square feet of...
You want to purchase an office building in Brooklyn. The property contains 27,500 square feet of rentable space and is currently occupied by multiple tenants each with differing maturities on their respective leases. No lease is currently shorter than 1 year. The annual rent in the 1st year of ownership is $42.50/sq ft. The vacancy rate is 6.5%. You expect to incur collection losses (from tenant default)on 1.5% of the square feet during your first year. 1. What is the...
Landlord and tenant have negotiated monthly rent at 5% of gross sale. The property has an...
Landlord and tenant have negotiated monthly rent at 5% of gross sale. The property has an operating expense ratio of 35%, a stabilized vacancy rate of 10%. What are the gross retail sales if net annual operating income is estimate to be $50,000?
Ultimately, the annual income the investor should be most interested in is: A. Potential gross income...
Ultimately, the annual income the investor should be most interested in is: A. Potential gross income B. Net operating income C. After-tax cash flow D. Before-tax cash flow E. None of the above
D) Umy property taxes Which of the following measures is considered the fundamental determinant of market...
D) Umy property taxes Which of the following measures is considered the fundamental determinant of market value for income-producing properties? A) potential gross income B) operating expenses C) capital expenditures D) net operating income
Sally owns real property for which the annual property taxes are $14,080. She sells the property...
Sally owns real property for which the annual property taxes are $14,080. She sells the property to Kate on April 2, 2018, for $704,000. Kate pays the real property taxes for the entire year on October 1, 2018. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar. a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $________ and Kate...
#1 MULTIPLE CHOICE (no need to show work but please get right) 1. A property has a net operating income of $25,000 and the capitalization rate used in the market is 10%. What is the indicated value? a...
#1 MULTIPLE CHOICE (no need to show work but please get right) 1. A property has a net operating income of $25,000 and the capitalization rate used in the market is 10%. What is the indicated value? a) $250,000 b) $300,000 c) $325,000 d) $2,500,000 2. A property sold for $555,000. The buyer anticipated that the potential gross income (PGI) would be $93,000, the vacancy would be 5%, and expenses would be 35% of the effective gross income (EGI) in...
Sally owns real property for which the annual property taxes are $13,030. She sells the property...
Sally owns real property for which the annual property taxes are $13,030. She sells the property to Kate on April 2, 2017, for $651,500. Kate pays the real property taxes for the entire year on October 1, 2017. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar. a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $ ------------- and...
Assume the following on a $/SF basis: on the revenue side, rent 100. On the expense side, property taxes 12, insurance 8...
Assume the following on a $/SF basis: on the revenue side, rent 100. On the expense side, property taxes 12, insurance 8, utilities 4, maintenance 8, security 6, and management 5. Assume a prevailing cap rate of 5% and that the cash flows are in perpetuity. What is the value of the income stream to an owner in a gross lease scenario? A. 1140 B. 1200 C. 1400 D. 2000
10.31 Lessen 10: The Income Approach ASSIGNMENT 10, continued rent is the rental 12. Complete the following statement: contract rent is the actual rental income specified in a lease and market income that a property would most probably command in the open market. (1) Market, contract (2) Effective, potential (3) Contract, market T4) Net effective, net potential 13. A reconstructed operating statement should include: (1) additions to capital. (2) income tax (3) book appreciation. @ management charges. 14. Which of...
The total annual rental income possible from a property if it were completely leased: The expenses necessary to keep a property operating, including property taxes, insurance premiums, and common area maintenance: [Choose ] NOI assessed value insurable value GRM operating expenses appreciation potential gross income cap rate CAM loan value The cost associated with maintaining the common areas of a property such as lobbies, hallways, and parking lots: [Choose] The income stream generated by the operation of the property, after...
D) Umy property taxes Which of the following measures is considered the fundamental determinant of market value for income-producing properties? A) potential gross income B) operating expenses C) capital expenditures D) net operating income
Most questions answered within 3 hours.
-
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 17 minutes ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 1 hour ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 1 hour ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 3 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 3 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 3 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 4 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 5 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 5 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 5 hours ago -
1.
What is the minimum volume to use in the Spec 20 cuvette in order
to...
asked 5 hours ago -
A builder wants to install wall-to-wall carpeting in a living
room of length 8.87 m and...
asked 5 hours ago