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.   Broker
B.   Property manager
C.   Owner
D.   Buyer
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.   13%
D.   $113,000
Question #3
Which of these has a negative impact on the property owner’s cash flow?
A.   Gross reimbursements
B.   Expense reimbursements
C.   Debt service
D.   Miscellaneous income
Question #4
The ______ affects a property’s income tax basis.
A.   Market value
B.   Depreciated value
C.   Assessed 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.   $50,000
B.   $25,000
C.   $75,000
D.   125%
Question #6
Income from a vending machine on a rental property is an example of what?
A.   Side income
B.   Property income
C.   Miscellaneous income
D.   Operating 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.   Net operating income
B.   Operating expenses
C.   Mortgage rate
D.   Vacancies and credit loss
Question #8
Effective gross income ‒ ______ = net operating income
A.   Mortgage payments
B.   Debt services
C.   Vacancies and credit loss
D.   Operating expenses

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