Finance Formulas Flashcards
1
Q
In income approach of appraising, what is net income?
A
Net income = Gross Scheduled Income - Vacancies, rent losses, and allowable expenses.
Note: you don’t subtract for debt service or income taxes!
2
Q
Gross Rent Multiplier (GRM)
A
GRM = Sale price - Annual or monthly rent
3
Q
Cost approach
A
Land value + Cost of improvements to reproduce the same property - Depreciation
4
Q
Desk fee
A
Office expense divided by desks/agents needed to operate office
5
Q
Company dollar
A
Gross income received minus all commissions paid out
