Property Valuation
A Kentucky commercial building has a potential gross income of $120,000. Vacancy and collection loss is 6%. Operating expenses are $45,000. What is the NOI?
A$67,800✓ Correct
B$75,000
C$80,000
D$112,800
Explanation
EGI = PGI minus Vacancy loss = $120,000 minus ($120,000 x 6%) = $120,000 minus $7,200 = $112,800. NOI = EGI minus Operating expenses = $112,800 minus $45,000 = $67,800.
Related Kentucky Property Valuation Questions
- A Kentucky commercial property appraiser must disclose in their report any:
- In Kentucky, an appraiser who is asked to appraise a Mammoth Cave area property near the national park should consider that the proximity to the park may:
- Functional obsolescence is caused by:
- Functional obsolescence caused by a feature that the market no longer desires, such as small closets in a Louisville home, is an example of:
- Functional obsolescence in a Kentucky home would be best represented by:
- A Kentucky appraiser who is appraising a property they have a financial interest in should:
- A Kentucky appraisal report that is prepared for a federally related transaction must comply with:
- When a Kentucky appraiser's value conclusion is significantly lower than the contract price, the lender's underwriter will likely:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →