Real Estate Math
A Delaware apartment building has 20 units. 18 are rented at $1,200/month. The other 2 are vacant. What is the current occupancy rate and the effective gross monthly income?
A90% occupancy; $21,600/month✓ Correct
B80% occupancy; $19,200/month
C90% occupancy; $24,000/month
D85% occupancy; $20,400/month
Explanation
Occupancy rate = 18 ÷ 20 = 90%. Effective Gross Monthly Income = 18 units × $1,200 = $21,600. Using the values given ($1,200), apply the appropriate formula.. The correct answer is 90% occupancy; $21,600/month.. This is a common calculation on the Delaware real estate exam.
Related Delaware Real Estate Math Questions
- A 10-acre parcel in Delaware sells for $2,500 per acre. What is the total sale price?
- A Delaware investor buys a rental property for $350,000 and puts 25% down. The monthly mortgage payment (P&I) is $1,495. The property generates $2,200/month rent. Monthly operating expenses are $600. What is the monthly cash flow after mortgage?
- A Delaware landlord receives monthly rent of $2,800. What is the annual gross rent?
- A Delaware property has land value of $95,000. The improvements have a replacement cost of $375,000, effective age of 10 years, and 40-year economic life. Using the cost approach, what is the estimated total property value?
- A Delaware investor buys a property for $275,000, spends $35,000 in renovation, and sells it for $365,000 with $18,000 in selling costs. What is the net profit?
- A Delaware property has a gross operating income of $55,000 and an operating expense ratio of 45%. What is the net operating income?
- An investor purchases a property for $500,000. After 4 years, it appreciates 3% per year (simple appreciation). What is the property worth?
- A Delaware buyer closes on May 31. The seller has not yet paid the annual property taxes of $5,400 (paid in arrears). How much does the seller owe the buyer in tax proration (using a 365-day year)?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →