Formulas
Terms
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Misc
Formulas
100
Debt Service
What is periodic repayment x mortgage x 12?

               Or

What is mortgage constant x mortgage?

100
OAR
What is overall rate?
100
Net operating income ➗ rate =
What is Value?
100
Two types of income
What is gross income and net operating income?
100
Building Income
What is improvement value x CRR


       Or

Net income before recapture - land income

200
Value
What is net operating income ➗ rate?
200
Gross Income
What is rental income before vacancy and collection
200

“Cash on cash” is also referred to as _________ and ___________.

What is equity dividend and equity?
200
Management , maintenance, utilities, security, elevator, landscaping 
What is variable expenses?
200
Equity Cap Rate
What is cash to equity ➗ down payment?
300
Net operating income
What is effective gross income (EGI) - total expenses?
300
Converts ONE YEAR of anticipated income at market rates
What is direct capitalization?
300
Expenses ➗ _________= expense ratio
What is effective gross income?
300
Property taxes and insurance
What is fixed expenses?
300
Equity to value ratio
What is down payment ➗ sales price?
400
Mortgage Constant
What is debt service ➗ loan?
400
Gross income after vacancy and collection
What is net operating income?
400
Gross income is the same as _________
Potential Gross Annual Income
400
Two income capitalization methods
What is direct capitalization with rates and multipliers, and yield capitalization?
400
Yield rate
What is income return on ➗ sales price?
500
Loan to value ratio
What is mortgage (debt) ➗ sales price?
500
Converts multi-year cash flows/income into a value using investor projections 
What is Yield Capitalization?
500
Potential gross income - __________= EGI
V&C (vacancy and collections)
500
Net operating income ➗ annual debt service
What is debt coverage ratio?
500
Equity income
What is net operating income - annual debt service
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