Real Estate Math
A warehouse rents for $9.50 per square foot annually. The building is 15,000 sq ft. What is the annual rent?
A$142,500✓ Correct
B$135,000
C$120,000
D$158,000
Explanation
Annual rent = 15,000 sq ft × $9.50/sq ft = $142,500.
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Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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