Indiana Real Estate License Exam Prep: All-in-One Review and Testing to Pass Indiana's PSI Real Estate Exam by Stephen Mettling

Author:Stephen Mettling [Mettling, Stephen]
Language: eng
Format: epub
Published: 2017-11-13T16:00:00+00:00

a. 20 acres

b. 40 acres

c. 60 acres

d. 5 acres

10.8. Homeowner Savannah owns the Southeastern ¼ of the Southwestern ¼ of the Northwestern ¼ of Section 4. How many acres is that property?

a. 4 acres

b. 40 acres

c. 10 acres

d. 8 acres

10.9 Yard of Pizza has a percentage lease on its 1,800 SF space in Lincoln Shops. The terms are $1.40 / SF / month rent plus 1.75% of the store’s gross income. If monthly sales averaged $41,500 last year, how much annual rent did Yard of Pizza pay last year?

a. $38,955

b. $43,420

c. $30,240

d. $21,525

10.10 A home appreciated 2 2/3% one year, then 5 1/5% the next year, then 7 1/4% the third year. What was the average appreciation over the 3-year period expressed as a decimal?

a. 5.04%

b. 15.24%

c. 7.56%

d. 4.8%

10.11 A homeowner paid $185,000 for a house three years ago. The house sells today for $239,000. How much has the property appreciated?

a. 23 %

b. 77 %

c. 29 %

d. 123 %

10.12 Seller Frank receives an offer of $290,000 on a property he listed at $308,000. How much is the offer as a percent of the listing price?

a. 87%

b. 91%

c. 94%

d. 106%

10.13 A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $30,000, vacancy and credit losses of $1,500, and operating expenses of $10,000. Using a capitalization rate of 9%, what is the indicated value (to the nearest $1,000)?

a. $206,000

b. $167,000

c. $222,000

d. $180,000

10.14 If gross income on a property is $75,000, net income is $30,000 and the cap rate is 8%, the value of the property using the income capitalization method is

a. $625,000

b. $375,000

c. $3,750,000

d. $937,500

10.15 The roof of a property cost $16,000. The economic life of the roof is 20 years. Assuming the straight-line method of depreciation, what is the depreciated value of the roof after 3 years?

a. $16,000

b. $13,600

c. $18,400

d. $12,000

10.16 Lee had to report his home office depreciation for the tax year. He has a 2,500 SF home and a 500 SF office area. Lee paid $280,000 for his home, and he figures the land portion carries about 25% of that value. If Lee depreciates on a 39-year basis, how much can he write off for his home office depreciation per year?

a. $1,077

b. $1,436

c. $5,384

d. $2,108

10.17 A property is being appraised by the cost approach. The appraiser estimates that the land is worth $40,000 and the replacement cost of the improvements is $175,000. Total depreciation from all causes is $27,000. What is the indicated value of the property?

a. $148,000

b. $228,000

c. $162,000

d. $188,000

10.18 An apartment owner paid $500,000 for her complex 5 years ago. An appraiser at that time valued the land @ $100,000, but land has appreciated 25% over this period. The investor has used a 40-year straight-line depreciation method to depreciate the property. What is its current value using the cost approach?

a. $437,500

b. $462,500

c. $475,000

d. $546,875

10.19 An apartment building that recently sold for $400,000 had monthly gross rent receipts of $3,200. What is its monthly gross rent multiplier?

a. 80

b. .01

c. 110

d. 125

10.20 A rental home has monthly gross income of $1,100.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.