# CAM Practice Financial Calculations

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Make the following calculations using this information. Be sure to use annual numbers and whole dollars.

Monthly Gross Potential Rent:

2% Collection Loss

6.2% Vacancy

8% Other Income

\$144,160
What is the Annual Market Rent? \$
What is the TRR (Total Rent Revenue)? \$
What is the Economic Occupancy? %
How Much is Other Income? \$
Operating Expenses are 45% of EGI. What is this number? \$

Debt Service is \$450,000

Reserve for Replacement is \$150,00

__________
What are the Total Controllable Expenses? \$
How much is NOI? \$
What is the amount of Cash Flow? \$
What is the Cash-on-Cash Return if the Owner invested \$2 million? %

__________

Monthly Gross Potential Rent:

2% Collection Loss (GPR X .02)

6.2% Vacancy (GPR X .062)

8% Other Income (GPR X .08)

\$144,160/\$1,729,920

\$34,598

\$107,255

\$138,394

What is the Annual Market Rent?

(\$144,160 x 12)

\$1,729,920
What is the TRR (Total Rent Revenue)?

(\$1,729,920 - \$107,255 - \$34,598)

\$1,588,067

(GPR-VAC-COL = TRR)

\$

What is the Economic Occupancy? (\$1,588,067/\$1,729,920)

91.8%

TRR/GPR

How Much is Other Income?

(\$1,729,920 X .08)

\$138,394
Operating Expenses are 45% of EGI. What is this number?

(1,588,067+138,394=1,726,461) (\$1,726,461 X .45)

\$776,907

(EGI X .45)

Debt Service is \$450,000

Reserve for Replacement is \$150,00

__________ __________
What are the Total Controllable Expenses?

(\$776,907 + \$450,000 + \$150,000)

\$1,376,907

(OE + DS + RR = TE)

How much is NOI?

(\$1,588,067 + \$138,394 = \$1,726,461)

(\$1,726,461 - \$776,907)

\$949,554

(EGI = TRR + OI)

(EGI – OE = NOI)

What is the amount of Cash Flow?

(949,554 - \$450,000 - \$150,000)

\$349,554

(NOI – DS – RR = CF)

What is the Cash-on-Cash Return if the Owner invested \$2 million? (349,554/\$2,000,000)

17.5%

(CF/\$2million)

### More Practice!

 Your Total Income missed budget by \$10,214. The budget was \$156,016 What percent was the negative variance? (Use one decimal place) __________ 23% of 4,967 is what number? (use whole numbers) __________ 135 is what percent of 367? (use one decimal place) __________ A property has NOI of \$2,130,287. It contains 369,362 total square feet. What is the NOI per square foot per month? (use dollars and cents) __________
 Your Total Income missed budget by \$10,214. The budget was \$156,016 What percent was the negative variance? (Use one decimal place) \$10,214/\$156,016 = .0654676 or 6.5% 6.5% 23% of 4,967 is what number? (use whole numbers) 1,142 (4967 X .23 = 1142.41 or 1142) 135 is what percent of 367? (use one decimal place) 36.8% (135/367 = .3678474 or 36.8) A property has NOI of \$2,130,287. It contains 369,362 total square feet. What is the NOI per square foot per month? (use dollars and cents) (2,130,287/369,362 = 5.7674774 or 5.77/12 = .480833 or .48) \$.48/sq.ft/month

Fill in the following blanks. Use whole dollars and extend percentages to one decimal place.

The Property has an annual GPR of \$2,425,760
What Percent of GPR is Vacancy if it totals \$207,589? %
What Percent of GPR are Concessions at \$65,223 %
Other Income is 6.2% of GPR. What amount is this? \$
Operating expenses are \$992,937. Is this over or under the industry standard of 43% of GPR? What % of GPR are the expenses.

(NOTE – This is NOT the Operating Expense Ratio)

OVER

UNDER

%

What is Effective Gross Income for this Property? \$
If NOI is \$1,310,408, what is the value of the property using a cap rate of 6.5%? \$
If the Property has 294 units, what is the value per unit? \$
The Property has an annual GPR of \$2,425,760
What Percent of GPR is Vacancy if it totals \$207,589?

(\$207,589/\$2,425,760)

8.6%

VAC/GPR = %

What Percent of GPR are Concessions at \$65,223

(65,223/\$2,425,760)

2.7%

CON/GPR

Other Income is 6.2% of GPR. What amount is this?

(\$2,425,760 X .062)

\$150,397

(GPR X .062)

Operating expenses are \$992,937. Is this over or under the industry standard of 43% of GPR? What % of GPR are the expenses.

(NOTE – This is NOT the Operating Expense Ratio)

(\$992,937/\$2,425,760 = .40933 or 41%)

UNDER

41%

(OE/GPR)

What is Effective Gross Income for this Property?

(\$2,425,760 - \$207,589 - \$65,223 + \$150,397)

\$2,303,345

(GPR-VAC-CON+OI)

If NOI is \$1,310,408, what is the value of the property using a cap rate of 6.5%?

(\$1,310,408/.065)

\$20,160,123

(NOI/CAP RATE)

If the Property has 294 units, what is the value per unit?

(\$20,160,123/294)

\$68,572

(VALUE/UNITS)

### More Practice

 There are 344 units at the property. There were 207 move outs last year. What was last year’s turnover rate? __________ The following service requests were completed in the first 5 months: 51, 72, 74, 80, 73. How many may be estimated to be complete for the year? __________ What is the renewal increase percent if the old rent was \$690 and the new rent is \$745? __________ There were 77 visitors to the property last month; 9 of those were returns. There were 24 leases. What was the closing ratio? __________ To reach the goal of 26 leases in the next 30 days, how much traffic is needed with a 29% closing ratio? __________