Multifamily Course Practice Quiz

Question 1 of 14

1. Question

1 point(s)

A property you are analyzing has a total gross income of $60,000. The expenses are $30,000. What is the NOI?

$2,000
$3,000
$18,000
$30,000

Question 2 of 14

2. Question

1 point(s)

A property you are analyzing is running a 60% expense ratio on $100,000 gross income. What is the NOI?

$10,000
$20,000
$30,000
$40,000

Question 3 of 14

3. Question

1 point(s)

Last year your property had a total gross income of $250,000. You had $125,000 in expenses. What was your expense ratio?

10%
25%
40%
50%

Question 4 of 14

4. Question

1 point(s)

Last year your property had a 40% expense ratio. The property had a gross income of $400,000. How much were expenses?

$55,000
$110,000
$135,000
$160,000

Question 5 of 14

5. Question

1 point(s)

Your lender said they’d provide 80% LTV on a $1,000,000 property. How much equity will need you to take down the deal?

$20,000
$200,000
$40,000
$220,000

Question 6 of 14

6. Question

1 point(s)

You need to put $150,000 down and were given 75% LTV. What is the purchase price of the property?

$400,000
$600,000
$725,000
$800,000

Question 7 of 14

7. Question

1 point(s)

You’re analyzing a B Class property and are trying to determine what the value is. The NOI is $115,000, and similar class B properties are trading at 7.5% cap rates. With this info, what is the property’s value?

$1,533,333
$1,728,444
$1,782,444
$1,355,555

Question 8 of 14

8. Question

1 point(s)

You’re analyzing a C Class property and are trying to determine what the value is. The NOI is $425,000, and similar class C properties are trading at 8.5% cap rates. With this info, what is the property’s value?

$4,000,000
$6,000,000
$5,000,000
$3,000,000

Question 9 of 14

9. Question

1 point(s)

You’re analyzing a small C Class property and are trying to determine what the value is. The NOI is $18,000, and similar class C properties are trading at 9% cap rates. With this info, what is the property’s value?

$200,000
$225,000
$232,000
$400,000

Question 10 of 14

10. Question

1 point(s)

Which property will most likely have a higher cap rate?

A 150 unit B+ property
A 16 unit D property

Question 11 of 14

11. Question

1 point(s)

You have a small property under contract at $200,000, in which you plan to pay cash. The property’s NOI is $10,000. What will your Cash on Cash Return be?

2%
4%
5%
6%

Question 12 of 14

12. Question

1 point(s)

You have a property under contract at $1,575,000. Your lender approved you for 75% LTV. Your yearly debt service is $75,000. The property’s NOI is $176,000. What will your Cash on Cash Return be?

12%
24%
25%
30%

Question 13 of 14

13. Question

1 point(s)

If your DSCR was only .92; the NOI could only cover ______ % of the mortgage payments?

72%
87%
92%
97%

Question 14 of 14

14. Question

1 point(s)

You’re analyzing a property that has an NOI of $54,000 and your debt service is $27,000 a year. What’s the DSCR?

1
2
3
4