It's that time again - QUIZ TIME!

Our newest quiz is brought to you by our amazing member, Andrew Syrios.

He has a stellar background in real estate investing which has earned him a spot has an author for our blog, and a guest spot on our podcast.

Take his quiz HERE!

Good luck :)

I don't know if anyone else is having trouble but the quiz was kinda flaky for me then kicked me out at question 7. Not having trouble with anything else on the web today.

Didn't have trouble taking the quiz, but still too many questions of opinion and not enough based on facts.

Good quiz for a newbie like me... may be little trivial for some of the seasoned folks..

#9 needs help. So do I. 😳 

This is great. Are there more of these? 

Eh, 9 out of 12, need to do me some more learn'n on Cap rates.

@Todd Fithian Ditto on the cap rates! But there were no technical issues taking the test. It was fun to take.

Love the quiz! 58%, ☹️

Very good quiz, although I am confused about the answer to the Cap Rate definition. It stated that the financing does not come into play for the Cap Rate number. The financing expense would most certainly figure into the expenses for the property, thus changing the Net, or am I missing something here? 

Also, not clear on the 300% rule for prospective tenants. What is that, in a nutshell? 

@Dallas Trufyn

Cap rate actually does not include debt service. Operating expenses are not part of debt service (mortgage) typically when figuring cap rate.

The idea is to be able to compare it to other properties in a vanilla manner with no financing involved..

Hope this helps,

Chris

@Dallas Trufyn

It's the 1/3rd  rule just different math.

As good practice a tenant's rent should not be more than 1/3rd their monthly income, OR their  monthly income should be approx 300% more than the rent.

That was a great challenge!! aaaand should keep my ADHD content for another 30mins or so!! haha

Question about #2..

So for a 75% LTV loan the principal is only $112,500 right? I plugged that into a mortgage calculator with 6% interest (30 years) and got a monthly payment of $674.49 and an annual loan payment of $8093.93. Did I do something wrong? I'm not seeing that as an answer and I'm not sure why the right answer is $6750.00

Originally posted by @Omar M. :

Question about #2..

So for a 75% LTV loan the principal is only $112,500 right? I plugged that into a mortgage calculator with 6% interest (30 years) and got a monthly payment of $674.49 and an annual loan payment of $8093.93. Did I do something wrong? I'm not seeing that as an answer and I'm not sure why the right answer is $6750.00

 Loan is simple interest only.  6% x 112,500 = 6750

@Rob Golob Great. Thanks for the clarification!

I love the quiz!  Maybe an explanation of how to get to the right answer if you get it wrong.  This will help to educate test-takers.

when you choose a wrong answer it displays the correct one on the same page just scroll down before moving on.

Good one...83%.

I love the quiz idea, I got the cap rate definition wrong and the one about what not to worry about finding on the property(a: copper pipes), does that mean if the property doesn't have copper pipes it's not the end of the world and everything else listed is more important/necessity? 75% though, keep the quiz's coming!!!

Missed the last one, duh, such an easy one. Great Quiz!