Real Estate Math
A property has annual expenses of $18,000 and an NOI of $42,000. What is the gross income if the vacancy rate is 5%?
A$60,000
B$63,158✓ Correct
C$56,842
D$65,000
Explanation
NOI = Effective Gross Income − Expenses. $42,000 + $18,000 = $60,000 EGI. EGI = Gross Income × (1 − vacancy). $60,000 = Gross × 0.95. Gross = $60,000 ÷ 0.95 = $63,158.
Related California Real Estate Math Questions
- A seller agrees to pay 3.5 discount points on a buyer's $320,000 loan to buy down the interest rate. How much will the seller pay in points?
- A rectangular lot measures 150 feet wide by 220 feet deep. How many square feet does it contain?
- A property's effective gross income is $108,000 per year. Operating expenses are $42,000. At a 7% cap rate, what is the estimated value?
- A salesperson receives 55% of the commission earned by their broker. If the total commission is $18,000, how much does the salesperson receive?
- A property has a $250,000 loan at 7.2% annual interest. The monthly payment is $1,700. How much of the FIRST monthly payment goes to principal?
- A rectangular commercial building is 80 feet wide and 120 feet long. At a lease rate of $2.50 per square foot per month, what is the monthly rent?
- Escrow closes on March 15. Annual property taxes of $6,000 were prepaid by the seller for the full calendar year. Using a 360-day year (30-day months), how much property tax credit does the buyer owe the seller at closing?
- A property sold for $680,000. The California county documentary transfer tax is $0.55 per $500 of the sale price. What is the transfer tax owed?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →