Real Estate Formulas Quiz

What is the formula for calculating the adjusted basis of an investment property?

• Basis + cost of improvements + qualified closing costs – realized depreciation

• Principal x interest rate

• Length x width

• Full market value x uniform percentage

How do you calculate the area of a square footage?

• 1/2 x base x height

• Length x width

• Square footage x price per square foot

• Principal x interest rate

What is the formula for annual interest?

• Principal x interest rate

• Full market value x uniform percentage

• Sales price x down payment (%)

• Total cost of points ÷ number of points

How do you convert square footage to acreage?

• Square footage ÷ 43,560

• Length x width

• 1/2 x base x height

• Principal x interest rate

How is the max monthly payment (back-end) calculated?

• Monthly income x payment-to-income ratio

• Monthly income x debt-to-income ratio - other debt

• Monthly income ÷ debt-to-income ratio

• Monthly income + other debt

How do you calculate the month 2 balance of an amortization schedule?

• Original principal balance - P1

• Original principal balance + P1

• Original principal balance ÷ P1

• Original principal balance x P1

What is the formula for monthly interest?

• Annual interest ÷ 12 months

• Annual interest x 12 months

• Annual interest + 12 months

• Annual interest - 12 months

How is the occupancy rate calculated?

• Occupied units ÷ total units

• Occupied units x total units

• Occupied units + total units

• Occupied units - total units

What is the formula for the payment-to-income ratio?

• Monthly payment + monthly income

• Monthly payment ÷ monthly income

• Monthly payment x monthly income

• Monthly payment - monthly income

What is the formula to find the property taxes?

• Assessed Value × tax rate

• Tax rate ÷ tax base

• Loan points × loan principal

• Monthly payment × number of payments