• 1
An investment property sold for \$5 million at at 6.1% cap rate. The investor put 25% down, and took out a 30-year loan for the balance at an interest rate of 4.5%. What is the investor’s cash-on-cash return on this investment?
• 2
The price of a property is \$1,200,000. The NOI is \$90,000 and the seller will carry a note at 5% interest-only. After how many years will the buyer have doubled his equity from principal paydown?
• 3
An investor secured a \$3,875,000 loan at 5.2% with monthly payments amortized over 30 years. Five years later, they want to sell the property and pay off the loan in full. The lender’s prepayment penalty is 3%. What is the payoff amount?
• 4
The price of a property is \$3,750,000. The LTV is 70%, the interest rate is 7.75%, the amortization schedule is 30 years, and the loan term is 10 years. What is the balloon payment?
• 5
An investor buys a property for \$4.35 million at a 6.0% cap rate. They are able to secure a loan with a debt service coverage ratio of 1.25 and an interest rate of 4.75% amortized over 30 years. What is the investor’s cash-on-cash return in the first year?
• 6
The NOI of a property is \$245,000. The cap rate is 7%. The LTV is 80%. The interest rate is 6.75%. The loan term is 7 years and the amortization is 30 years. What will be the balloon payment at maturity?
• 7
A property is selling for \$2,950,000 that has a SGI of \$373,000.  The current vacancy is 11%, and the expenses total \$178,913. What is the cap rate?
• 8
An investor is buying a property for \$7,000,000 at a 7.5% CAP. The debt service coverage ratio is 1.3, the term is 25 years, and the interest rate is 5.875%.  What is the investor’s maximum loan amount?
• 9
A commercial property has a GRM of 12.2. The contract price is \$2,837,720. Expenses are 35% of SGI and vacancy is 3%.  The debt service coverage ratio is 1.15, the amortization is 30 yrs, and the interest rate is 5.5%. What is the maximum loan amount on this property?
• 10
A property is selling for \$6,950,000 that has a SGI of \$673,000.  The current vacancy is 8%, and the expenses total \$278,913. What is the cap rate?
• 11
A buyer on a property wants a cash-on-cash return of 8% on in-place income on day 1.  The loan obtainable is for \$3,825,000 at 6.25% and a 25 year term. The property’s NOI is \$502,788.  What is the most the buyer can pay?
• 12
A buyer is preparing to write an offer on a property for \$4,500,000 and wants to put down only 20%. The best available conventional loan provides for a 70% LTV at 7.5% interest with a 25-year amortization. The buyer asks that the seller carry an interest-only 2nd trust deed for the difference. What is the maximum the interest rate could be on the 2nd to get the buyer’s total monthly payment to \$26,650?
• 13
An investor acquired a 42-unit property for \$6 million at a 6.0% cap rate. During the holding period, they increased the SGI by an average of \$128 per unit per month. Vacancy averages 3%. Management fees are 6% and all other operating expenses remain unchanged. How much appreciation did the investor create if they sold the property at a 5.75% cap rate?
• 14
An investor secures a 75% LTV loan on an investment property for sale at \$4,750,000. The interest rate is 5.5%, the loan is amortized over 25 years, and the loan term is 7 years. The lender charges 2 discount points and \$8500 in fees at origination. Four years later, the investor sells the property and pays off the loan with a 2% prepayment penalty. What was the investor’s actual annual cost of capital on the loan?
• 15
An investor bought an apartment complex five years ago for \$5.25 million at a 6.5% cap rate. They secured a 75% loan at 4.5% interest amortized over 30 years. Today, the property is operating at a 9.0% cap rate based on the acquisition price, and they are considering selling the property. What is the investor’s current return on equity?
• 16
• 17
• 18