Real Estate Math
A Connecticut investment property generates monthly rents of $3,500. Using a GRM of 130, what is the estimated value?
A$350,000
B$420,000
C$455,000✓ Correct
D$490,000
Explanation
Value = GRM × Monthly Rent = 130 × $3,500 = $455,000. Using the values given ($3,500), apply the appropriate formula.. The correct answer is $455,000.. This is a common calculation on the Connecticut real estate exam.
Related Connecticut Real Estate Math Questions
- A Connecticut buyer's mortgage payment (P&I) is $1,985/month. The annual interest rate is 6% and the loan balance is $310,000. How much of the first payment goes toward principal?
- A Connecticut apartment building has 12 units. 10 units rent for $1,600/month and 2 units rent for $1,850/month. The vacancy rate is 8%. Annual operating expenses are $52,000. What is the NOI?
- A Connecticut property is listed at $749,000. After 60 days, the seller reduces the price by 4%. What is the new listing price?
- A Connecticut investor purchases an apartment building for $750,000. Annual NOI is $52,500. The investor expects the property to appreciate 3% per year. What is the total return (cap rate + appreciation) in the first year?
- A Connecticut investment property has an annual NOI of $55,000. Comparable properties sell at a 7.5% cap rate. What is the estimated value?
- A Connecticut buyer purchases a home for $420,000 and five years later sells it for $504,000. What was the average annual appreciation rate?
- A Connecticut commercial building sells for $3,200,000. The broker charges 4% commission, split equally between the listing and selling offices. Each office splits with their salesperson 70/30 (70% to salesperson). What does each salesperson earn?
- An investor buys a property for $750,000 and sells it 2 years later for $832,500. What is the total return on investment?
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →