45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 14 Unit 3 Exam

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Question #1
The list price is the price for which the ________ has agreed to sell a property.
A.   Property manager
B.   Broker
C.   Buyer
D.   Owner
Question #2
An investor is thinking about buying a $200,000 commercial property. She has $100,000 saved up for a down payment and wants to finance the remaining $100,000. Annual cash flow is projected to be $13,000. What is the potential return on investment?
A.   26%
B.   87%
C.   $113,000
D.   13%
Question #3
Which of these has a negative impact on the property owner’s cash flow?
A.   Gross reimbursements
B.   Debt service
C.   Expense reimbursements
D.   Miscellaneous income
Question #4
The ______ affects a property’s income tax basis.
A.   Assessed value
B.   Market value
C.   Depreciated value
D.   Investment value
Question #5
If a cash investment of $100,000 results in a 25% ROI, what was the amount of cash flow?
A.   125%
B.   $50,000
C.   $75,000
D.   $25,000
Question #6
Income from a vending machine on a rental property is an example of what?
A.   Property income
B.   Miscellaneous income
C.   Operating income
D.   Side income
Question #7
When this value is negative, it is a sign that the investment property cannot bring in enough money to cover its costs to maintain.
A.   Operating expenses
B.   Vacancies and credit loss
C.   Net operating income
D.   Mortgage rate
Question #8
Effective gross income ‒ ______ = net operating income
A.   Mortgage payments
B.   Operating expenses
C.   Debt services
D.   Vacancies and credit loss

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