Transcription of Florida Math Guide
1 MathGuideFloridaMath GuideCourseConceptFormulaAdjusted basis (investment property)Basis + Cost of improvements + Qualified closing costs Realized depreciation = Adjusted basis (investment property)Adjusted basis (primary residence)Basis + Cost of improvements + Qualified closing costs = Adjusted basis (primary residence)Annual interest formulaPrincipal x Interest rate = Annual interestAsking priceTotal square footage x Price per square foot = Asking priceBuildable lots per tract43,560 sq. ft per acre x percent available for lots = sq. ft available for lots per acre Sq ft available for lots per acre x number of acres in tract = total available sq.
2 Ft Total available sq. ft / minimum sq. ft per lot = number of buildable lots in tractCap rateNOI Property value = Cap rateCapital gain Realized gain Adjusted basis = Capital gain Cost per pointTotal cost of points Number of points = Cost per pointDepreciable basisPurchase price + Acquisition costs + Renovations Land value = Depreciable basisDepreciation (%)Age of property Total useful life = Depreciation (%)Depreciation allowanceDepreciable basis Useful life = Annual IRS depreciation deductionDepreciation cost ($)Reproduction cost x Depreciation (%) = Depreciation cost ($)Discount point feesPrincipal balance x Loan points = Discount point feesDown payment ($)Sales price x Down payment (%) = Down payment ($)DSCRNet operating income Total debt service = DSCRE ffective gross incomeProperty value + Property income - Vacancy cost = Effective gross income (EGI)Gross rent multiplierProperty price Annual rent income = Gross rent multiplier (GRM)
3 Gross rental incomeMonthly rent + Other income = Gross rental incomeInterestInterest rate x Principal = InterestLoan principalCost per point x 100 = Loan principalLoan-to-value ratioLoan amount Purchase price = Loan-to-value ratioMonthly interest formulaAnnual interest 12 months = Monthly interestMonthly interest paymentInterest rate x Principal balance 12 months = Monthly interest paymentNet leaseFixed rent + Property expense(s) = Net leaseNet operating incomeEGI - Operating expenses = Net operating income (NOI)Net to sellerSeller s credits - Seller s debits = Net to sellerOccupancy rateOccupied units Total units = Occupancy ratePartTotal x Percentage = PartPayment-to-income ratioMonthly payment Monthly income = Payment-to-income ratioMath Guide (continued)CoursePercentagePart Total = PercentagePercentage leaseFixed rent + (Overage x Sales rate) = Rent Price per square footAsking price Total square footage = Price per square footageProjected gross incomeContract rent Projected rent = Projected gross income (PGI)
4 Property tax savingsTotal exemptions x Tax rate = Property tax savingsProperty taxesTaxable value x Tax rate = Annual property taxes dueProperty valueReproduction cost - Depreciation + Land value = Property valueProration Item to be prorated x Proportion of periodic cost party is responsible for = Amount allocated to given partyQuarterly interestAnnual interest 4 = Quarterly interestRealized gainSales price Selling costs = Realized gainSolving for acreageTotal square footage 43,560 square foot per acre = AcresSpecial assessmentTotal special assessment cost x Homeowner s share = Special assessmentSquare footageLength x Width = square footageStreet paving assessment[(Front feet x Amount per linear foot )]
5 X Owner percentage] 2 = Street paving assessmentTax baseTotal assessed value Total exemptions = Tax baseTax rateTax requirement Tax base = Tax rateTaxable valueAssessed value Homestead exemptions = Taxable valueTotalPart Percentage = TotalTotal cost of pointsLoan points x Loan principal = Total cost of pointsTrianangular lots1/2 x Base x Height = square footVacancy costVacancy percentage (%) x PGI = Vacancy costVacancy rateVacant units Total units = Vacancy rateValue (V)Net operating income (I) Capitalization rate (R) = Value (V)Variable lease(New index Original index ) x Original rent rate = New rent rateVolumeLength x Width x Height = Volume (in cubic feet)
