Real Estate Math
A Connecticut property has a potential gross income of $96,000/year, a 5% vacancy rate, and operating expenses equal to 40% of EGI. Using an 8% cap rate, what is the property value?
A$684,000✓ Correct
B$855,000
C$720,000
D$570,000
Explanation
EGI = $96,000 × 0.95 = $91,200. Operating expenses = $91,200 × 40% = $36,480. NOI = $91,200 - $36,480 = $54,720. Value = $54,720 ÷ 0.08 = $684,000.
Related Connecticut Real Estate Math Questions
- A Connecticut investment property generates monthly rents of $3,500. Using a GRM of 130, what is the estimated value?
- 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 property taxes are $9,720 per year. The assessment ratio is 70% and the market value is $580,000. What is the mill rate?
- 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 homeowner refinances their $380,000 mortgage from 7.5% to 6.5%. The monthly payment at 7.5% is $2,660 and at 6.5% it would be $2,403 (30-year term). The closing costs for the refinance are $7,500. How many months to break even?
- A Connecticut property is assessed at 70% of market value. The assessed value is $196,000. What is the market value?
- A Connecticut broker earns $24,750 from a transaction. This represents the broker's 45% share of the total commission. What was the total commission?
- A Connecticut buyer purchases a condo for $385,000 with a 15% down payment. PMI is 0.65% of the loan amount annually. What is the monthly PMI premium?
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →