Real Estate MathIntermediateDelaware Exam
A Delaware property has a net operating income of $36,000 and sold for $450,000. What is the capitalization rate?
A7%
B8%Correct
C9%
D10%
Why 8% Is Correct
Answer B: 8%
Cap Rate = NOI ÷ Sale Price = $36,000 ÷ $450,000 = 0.08 = 8%.
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
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