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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? %
Reveal answer

__________

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) __________
Reveal answer
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? $
Reveal answer
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? __________
Reveal answer
There are 344 units at the property. There were 207 move outs last year. What was last year’s turnover rate? (207/344 = .6017441 or 60.2%)
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?

(51+72+74+80+73 = 350 / 5 months = 70 per month x 12 months)

840 requests

What is the renewal increase percent if the old rent was $690 and the new rent is $745?

(77 – 9 returns = 68; 24 leases/68 visitors = .3529411 or 35.3%)

35.3%
There were 77 visitors to the property last month; 9 of those were returns. There were 24 leases. What was the closing ratio?

(26 leases/.29 (29%) closing = 89.655172 or 90)

90 traffic
To reach the goal of 26 leases in the next 30 days, how much traffic is needed with a 29% closing ratio?

(26 leases/.29 (29%) closing = 89.655172 or 90)

90 traffic