Does anyone have the cap rate formula memorized? I keep mixing it up with GRM on practice problems

Cap Rate = NOI / Purchase Price
GRM = Purchase Price / Gross Annual Rent

Easy way to remember: Cap Rate uses NET income (after expenses), GRM uses GROSS rent (before expenses). Cap Rate is a percentage, GRM is a multiplier.

omg thank you Alexa. I made a quizlet set for all the formulas if anyone wants it: roadquiz.io/s/re-math-formulas

Is anyone going to the review session tonight? Prof. Amundson said it's on Zoom at 7pm

Yes! Also has anyone started the investment analysis assignment? I'm stuck on the cash-on-cash return calculation

Cash-on-Cash = Annual Pre-Tax Cash Flow / Total Cash Invested. So if you put $100K down and your annual cash flow after debt service is $8K, your CoC return is 8%.

Study group at Lund Library tomorrow morning? I booked Room 204 from 10-1

I'll be there! Also -- does anyone know if the midterm is cumulative or just chapters 5-8?

She said chapters 1-8 but "heavily weighted toward 5-8." I asked after class on Friday. Bringing one 8.5x11 note sheet front only is allowed.

Quick poll -- what topic are you most worried about?

Hey everyone! I see Math & Calculations is the top concern. I just created a practice set with 20 targeted problems covering cap rates, GRM, commission splits, and proration. Try it here: roadquiz.io/practice/re-math-20

Good luck on the midterm Monday -- you've all been putting in the work!