Real Estate Math
A property has 18 units. Each unit rents for $775/month. The building sold with a GRM of 9 (annual). What was the sale price?
A$1,503,900✓ Correct
B$167,100
C$1,255,500
D$837,000
Explanation
Annual gross income = 18 × $775 × 12 = $167,400. Sale price = $167,400 × 9 = $1,506,600. Closest calculation: $167,400 × 9 = $1,506,600. The
Related Alabama Real Estate Math Questions
- A 6-unit apartment building has a gross potential income of $5,400/month. If vacancy is 6%, what is the annual effective gross income?
- A building has a net operating income of $45,000. If the cap rate is 9%, what is the estimated value?
- An Alabama income property has a gross income of $60,000, vacancy losses of $3,000, and operating expenses of $22,000. What is the NOI?
- A listing agent receives 60% of a 5% commission on a $400,000 sale. How much does the listing agent earn?
- A property's assessed value is $180,000 and the tax rate is $14 per $1,000 of assessed value. What is the annual property tax?
- A property has a gross annual income of $84,000 and a GRM of 10. What is the estimated property value?
- A house rents for $1,500/month. The gross rent multiplier (GRM) in the area is 120 (monthly). What is the estimated value?
- An agent earns 3% of the sale price. The property sold for $320,000. What is the agent's commission?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →