Real Estate Math
A Connecticut investor purchases a 4-unit property at a 6.8% cap rate. The annual NOI is $51,000. What is the purchase price?
A$750,000✓ Correct
B$680,000
C$725,000
D$700,000
Explanation
Value = NOI ÷ Cap rate = $51,000 ÷ 0.068 = $750,000. To solve this, multiply the relevant values: $51,000 at 6.8%.. The correct answer is $750,000.. This is a common calculation on the Connecticut real estate exam.
Related Connecticut Real Estate Math Questions
- A borrower's PITI is $2,400 per month and their gross monthly income is $8,000. What is the front-end DTI ratio?
- A Connecticut agent lists a property at $459,000. The seller wants to net $430,000 after a 5% commission. Was the listing price set correctly?
- A Connecticut property sells for $725,000. The seller's broker charges a 5% commission, split 50/50 between the listing and selling offices. The listing salesperson earns 55% of the listing office's share. How much does the listing salesperson earn?
- A Connecticut salesperson sold 18 homes averaging $385,000 each. The average commission was 5.5%, and the salesperson's split with the broker was 60%. How much did the salesperson earn?
- A Connecticut property was listed for $540,000. It sold for $516,600 after a price reduction. What percentage was the price reduced?
- A Connecticut investor buys a property for $875,000, rents it for $7,200/month, and has annual operating expenses of $42,000. What is the annual cash-on-cash return if the investor put $175,000 down and the annual debt service is $48,000?
- A Connecticut buyer puts 10% down on a $395,000 home. The lender charges 1.5 discount points. How much does the buyer pay in points?
- A property management company charges 9% of gross rents plus a $150/month flat management fee. Monthly gross rent is $9,500. What is the total monthly management fee?
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →