Real Estate Math
A Utah HOA with 120 units collects $200/month per unit in assessments. Annual operating costs are $180,000. How much is reserved each year?
A$108,000 deficit
B$108,000 surplus✓ Correct
C$288,000 total collected
D$0—the budget is exactly balanced
Explanation
Annual collections = 120 × $200 × 12 = $288,000. Annual costs = $180,000.
People Also Study
Related Utah Questions
- A Utah property manager collects $120,000 in annual rents and charges a 9% management fee plus a leasing fee of one month's rent per new lease (3 new leases per year, $1,000/month average). What are total annual fees?Real Estate Math
- A Utah condominium HOA has a $60,000 annual budget for 40 units assessed equally. What is each unit's monthly HOA fee?Real Estate Math
- A Utah triplex generates $3,600/month in gross rents. Annual operating expenses are $15,000 with 5% vacancy. What is the annual NOI?Real Estate Math
- A Utah duplex earns $24,000/year in rents. Operating expenses are $9,600. The owner has a $120,000 mortgage at 6% annual interest (interest only). What is the cash flow after interest?Real Estate Math
- A Utah property manager who discovers that a tenant is operating an illegal business from the rental unit should:Property Management
- A Utah condominium unit owner who fails to pay HOA assessments may face:Property Management
- A Utah property manager who discovers that a tenant is operating an illegal business from the rental unit must:Property Management
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 Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →