Real Estate Math
An investor purchases a rental property for $320,000 with a 25% down payment. What is the loan-to-value (LTV) ratio?
A25%
B75%✓ Correct
C80%
D70%
Explanation
LTV ratio = Loan amount ÷ Property value. Down payment = $320,000 × 25% = $80,000.
Related Alabama Real Estate Math Questions
- A $350,000 property is assessed at 70% of market value. The tax rate is 18 mills. What is the annual tax?
- A homeowner wants to net $240,000 after paying a 5% commission. What is the minimum selling price?
- 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?
- An Alabama property has a net operating income of $45,000 and a cap rate of 7.5%. What is the property's value?
- An agent earns a 6% commission on a sale. The listing side gets 3% and the selling side gets 3%. The home sold for $350,000. How much does each side earn?
- A seller's net after a 6% commission and $4,500 in closing costs is $230,000. What did the property sell for?
- An investor buys a building for $500,000 with a 25% down payment. What is the loan amount?
- Alabama property has an assessed value of $18,000 (at 10% of market value). The tax rate is 50 mills. What is the annual property tax?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →