IAAO 102 REAL PROPERTY VALUATION FUNDAMENTALS MASS APPRAISAL METHODS TEST PAPER

IAAO 102 REAL PROPERTY VALUATION
FUNDAMENTALS MASS APPRAISAL
METHODS TEST PAPER

●● Fixed Rate Mortgage
Answer: A loan secured by real property featuring an interest rate that is
constant for the term of the loan is referred to as


●● Anticipation
Answer: The underlying principle providing the basis of the income
capitalization approach is


●● Income / Rate = Value
Answer: The basic equation used in the income approach to value is


●● None of the above: Gross lease is obligated to the Landlord
Answer: A gross lease requires that, in addition to the rent, the tenant
must pay:


●● Deficit Rent
Answer: When market rent exceeds contract rent the difference is known
as:

, ●● Market Rent
Answer: The rental income that a property would most probably
command in the open market is called:


●● Effective gross income
Answer: The anticipated income from all operations of the property,
adjusted for vacancy and collection losses and miscellaneous income is
called:


●● 0.47
Answer: if an income property has an annual effective gross income of
$64,000 with total expenses of $30,000 and variable expenses of
$17,000, what is the operating expense ratio?


●● 44%
Answer: In reconstructing an income statement for an apartment
complex, you estimate that the potential gross income is $500,000. The
vacancy and collection loss allowance is 6%. If operating expenses are
$205,000, what is the operating expense ratio (rounded)?


●● What is the potential gross income?
What is the effective gross income?
What is the net operating income?
What is the overall capitalization rate?