Chapter 16: Commercial Real Estate
other income
Income earned from laundry facilities at a rental property will be included under which of the following line items?
Debt service
Net operating income does NOT take into account which of the following?
effective gross income
The actual income generated from a property before expenses, is known as...?
net operating income
The value of a commercial property is primarily based on which of the following?
yield
a return on investment
time value of money
the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity
capitalization rate
the rate of interest which is considered a reasonable return on the investment, and used in the process of determining value based upon net income
leverage
the use of borrowed capital (mortgage) to increase the potential return of an investment