Real Estate Math
A Colorado property has NOI of $90,000 and an asking price of $1,200,000. What is the cap rate?
A6.5%
B7.5%✓ Correct
C8.0%
D8.5%
Explanation
Cap rate = NOI / Value = $90,000 / $1,200,000 = 0.075 = 7.
Related Colorado Real Estate Math Questions
- A Colorado property sold for $395,000. The buyer paid 3.5% down and financed the rest. How much did the buyer borrow?
- A Colorado homeowner's property was assessed at $42,000 with a mill levy of 78.5 mills. What is the annual property tax owed?
- A Colorado section of land is divided into 16 equal parcels. Each parcel is how many acres?
- A Colorado commercial property has 10,000 rentable square feet, rented at $18/sq ft/year on a net basis. The vacancy is 8%. What is the effective gross income?
- A Colorado listing agreement states the broker will receive 6% of the first $300,000 and 4% on any amount over $300,000. If the property sells for $450,000, what is the total commission?
- A Colorado property sells for $485,000. The listing broker charges a 6% commission, split equally with the buyer's broker. How much does each broker's office receive?
- A Colorado property's cap rate is 8% and the NOI is $64,000. What is the property's value under the income approach?
- A Colorado broker negotiates a 7% commission on a commercial sale. The total commission is $56,000. What was the sale price of the property?
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →