Real Estate Math
An Alaska property has an annual NOI of $45,000 and was purchased for $600,000. What is the overall cap rate?
A6.5%
B7.5%✓ Correct
C8%
D12%
Explanation
Cap rate = NOI ÷ Purchase Price = $45,000 ÷ $600,000 = 0.075 = 7.5%. Using the values given ($45,000, $600,000), apply the appropriate formula.. The correct answer is 7.5%.. This is a common calculation on the Alaska real estate exam.
Related Alaska Real Estate Math Questions
- An Alaska property is listed for $420,000 and sells for 97% of the list price. What is the sale price?
- A parcel of land is described as the W½ of the NE¼ of a section. How many acres does this parcel contain?
- An Alaska property sold for $395,000. The buyer made a 20% down payment. Transfer tax in the municipality is $3.50 per $1,000 of sale price. What is the transfer tax?
- An Alaska investor buys a property for $750,000 with a 30% down payment. The property generates NOI of $60,000/year. The cash-on-cash return (ignoring debt service) before financing is:
- A property in Fairbanks sells for $285,000. The broker charges a 6% commission. The listing agent and selling agent each receive 50% of the total commission. How much does each agent receive?
- An Alaska property is listed for $560,000. The seller agrees to pay 3% of the sale price toward buyer closing costs. If the property sells at full price, how much does the seller contribute to closing costs?
- A parcel of land in Alaska is described as the S½ of the NW¼ of Section 12. How many acres does this parcel contain?
- A property sells for $180,000 and was originally purchased for $150,000. What is the percentage of appreciation?
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →