Real Estate Math
A Massachusetts condominium association has annual operating expenses of $150,000 and a unit owner with a 3.5% interest. What are that owner's annual condo fees (excluding reserves)?
A$5,250✓ Correct
B$4,286
C$5,500
D$3,000
Explanation
Owner's share = $150,000 × 3.5% = $150,000 × 0.
People Also Study
Related Massachusetts Questions
- In Massachusetts, a condominium association's power to assess unit owners for common expenses is derived from the:Property Management
- A Massachusetts condominium owner's 'percentage interest' in the common areas is determined by:Property Ownership
- In Massachusetts, a condominium unit owner's monthly 'common area fee' (condo fee) is used for:Property Ownership
- A Massachusetts condominium association's board makes a decision to assess each unit owner $5,000 for emergency roof repairs. Individual unit owners who disagree with this assessment:Property Management
- A Massachusetts duplex generates $2,400/month per unit. Annual operating expenses are $19,200. What is the annual NOI?Real Estate Math
- A Massachusetts property has an annual gross income of $54,000, a vacancy rate of 8%, and operating expenses of $22,500. What is the capitalization rate if the property's value is $450,000?Real Estate Math
- A 6-unit building has monthly gross rents of $1,650 per unit. Vacancy is 5% and operating expenses are $52,000 annually. What is the annual NOI?Real Estate Math
- A Massachusetts apartment building has 8 units each renting for $1,800/month. Annual operating expenses are $62,000. What is the annual NOI?Real Estate Math
Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Study This Topic
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →