CAPS - CERTIFIED APARTMENT
PORTFOLIO SUPERVISOR -
MODULE 2 Q’S 2025 |VERIFIED
What is the primary role of a CAPS with regard to an owner's
investment in a property? - ACCURATE ANSWERS✔✔ To protect this
investment and increase Net Operating Income (NOI).
How does an investment in a multifamily property affect an owner's
taxes? - ACCURATE ANSWERS✔✔ Depreciation or tax recovery and
Capital Gains Tax Rate
What is depreciation or tax recovery? - ACCURATE ANSWERS✔✔
Deduction for recovery of cost of wear and tear, age or obsolescense
Why would an investor choose a mortgage to finance a real estate
investment? - ACCURATE ANSWERS✔✔ They need additional funds.
They have enough money, but take out loan in order to diversify
investments. They want to take advantage of tax benefits that allow
deduction of mortgage interest and depreciation of their assets. They
want to benefit from financial leverage.
What's a mortgage note? - ACCURATE ANSWERS✔✔ A document
that establishes the existence of debt between lender and borrower
,What is receivership? - ACCURATE ANSWERS✔✔ Receivership is a
court order whereby all property subject to dispute is placed under the
control of an independent "receiver." This happens when a borrower
doesn't pay his or her mortgage, and is a step before foreclosure. The
purpose of receivership is to protect the asset during lawsuit if there is a
danger the property will be dissipated or removed otherwise.
What does a CAPS handle when a property is in receivership? -
ACCURATE ANSWERS✔✔ Deal with hiring and spending freezes.
Deal with unpaid vendors Manage public relations. Watch for turnover
and occupancy problems due to scared or angry residents. Ensure the
onsite team remains functional. Ensure the property stays operational
and cost-efficient.
What are the primary types of mortgage loans? - ACCURATE
ANSWERS✔✔ Fixed-rate loans, Variable-rate loans (also Adjustable-
Rate Mortgages, or ARMs), Balloon loans, Bullet loans
What is loan-to-value ratio and how is it computed? - ACCURATE
ANSWERS✔✔ This ratio compares the amount of the loan to the
market value of the property. Loan-to-value ratio (LTV) = Loan amount /
property value
What does a low LTV ratio mean to a lender? - ACCURATE
ANSWERS✔✔ A low LTV ratio means that a property is low-risk.
, What is debt coverage ratio and how is it computed? - ACCURATE
ANSWERS✔✔ Debt coverage ratio (DCR) measures a property's
capacity to repay the loan from its Net Operating Income (NOI). DCR =
Net Operating Income (NOI)/ Annual Debt Service (ADS).
What does a low DCR ratio mean to a lender? - ACCURATE
ANSWERS✔✔ A low DCR ratio means that a property is high-risk.
What's the role of a CAPS in budgeting? - ACCURATE ANSWERS✔✔
CAPS and property owners both use budgets to plan and monitor
financial activities and track property performance. While the
community manager does most of the heavy lifting of budget prep, the
CAPS is responsible for getting them started and guiding them through
the process
What are the three main types of budget and when are they used? -
ACCURATE ANSWERS✔✔ Lease-up budget: New properties, until
property reaches stable occupancy. Renovation budget: Properties
undergoing renovations for enhancement or restoration. Operating
budget: Stable properties, fully leased, operating normally
As a CAPS, what do you need to do in order to best coach your
community managers regarding budgets? - ACCURATE ANSWERS✔✔
Work closely with community managers during budgeting, Check in
with them regularly, not just at the end, Make sure community managers
are involving their service managers.
PORTFOLIO SUPERVISOR -
MODULE 2 Q’S 2025 |VERIFIED
What is the primary role of a CAPS with regard to an owner's
investment in a property? - ACCURATE ANSWERS✔✔ To protect this
investment and increase Net Operating Income (NOI).
How does an investment in a multifamily property affect an owner's
taxes? - ACCURATE ANSWERS✔✔ Depreciation or tax recovery and
Capital Gains Tax Rate
What is depreciation or tax recovery? - ACCURATE ANSWERS✔✔
Deduction for recovery of cost of wear and tear, age or obsolescense
Why would an investor choose a mortgage to finance a real estate
investment? - ACCURATE ANSWERS✔✔ They need additional funds.
They have enough money, but take out loan in order to diversify
investments. They want to take advantage of tax benefits that allow
deduction of mortgage interest and depreciation of their assets. They
want to benefit from financial leverage.
What's a mortgage note? - ACCURATE ANSWERS✔✔ A document
that establishes the existence of debt between lender and borrower
,What is receivership? - ACCURATE ANSWERS✔✔ Receivership is a
court order whereby all property subject to dispute is placed under the
control of an independent "receiver." This happens when a borrower
doesn't pay his or her mortgage, and is a step before foreclosure. The
purpose of receivership is to protect the asset during lawsuit if there is a
danger the property will be dissipated or removed otherwise.
What does a CAPS handle when a property is in receivership? -
ACCURATE ANSWERS✔✔ Deal with hiring and spending freezes.
Deal with unpaid vendors Manage public relations. Watch for turnover
and occupancy problems due to scared or angry residents. Ensure the
onsite team remains functional. Ensure the property stays operational
and cost-efficient.
What are the primary types of mortgage loans? - ACCURATE
ANSWERS✔✔ Fixed-rate loans, Variable-rate loans (also Adjustable-
Rate Mortgages, or ARMs), Balloon loans, Bullet loans
What is loan-to-value ratio and how is it computed? - ACCURATE
ANSWERS✔✔ This ratio compares the amount of the loan to the
market value of the property. Loan-to-value ratio (LTV) = Loan amount /
property value
What does a low LTV ratio mean to a lender? - ACCURATE
ANSWERS✔✔ A low LTV ratio means that a property is low-risk.
, What is debt coverage ratio and how is it computed? - ACCURATE
ANSWERS✔✔ Debt coverage ratio (DCR) measures a property's
capacity to repay the loan from its Net Operating Income (NOI). DCR =
Net Operating Income (NOI)/ Annual Debt Service (ADS).
What does a low DCR ratio mean to a lender? - ACCURATE
ANSWERS✔✔ A low DCR ratio means that a property is high-risk.
What's the role of a CAPS in budgeting? - ACCURATE ANSWERS✔✔
CAPS and property owners both use budgets to plan and monitor
financial activities and track property performance. While the
community manager does most of the heavy lifting of budget prep, the
CAPS is responsible for getting them started and guiding them through
the process
What are the three main types of budget and when are they used? -
ACCURATE ANSWERS✔✔ Lease-up budget: New properties, until
property reaches stable occupancy. Renovation budget: Properties
undergoing renovations for enhancement or restoration. Operating
budget: Stable properties, fully leased, operating normally
As a CAPS, what do you need to do in order to best coach your
community managers regarding budgets? - ACCURATE ANSWERS✔✔
Work closely with community managers during budgeting, Check in
with them regularly, not just at the end, Make sure community managers
are involving their service managers.
