Real Estate Math
If a Delaware property's NOI is $67,500 and it sells for $900,000, what is the cap rate?
A7.5%✓ Correct
B8%
C6.5%
D7%
Explanation
Cap rate = NOI ÷ Value = $67,500 ÷ $900,000 = 0.075 = 7.5%. Using the values given ($67,500, $900,000,), apply the appropriate formula.. The correct answer is 7.5%.. This is a common calculation on the Delaware real estate exam.
Related Delaware Real Estate Math Questions
- A Delaware property purchased 5 years ago for $250,000 has appreciated 4% per year compounded. What is its approximate current value?
- A property's assessed value is $240,000. The tax rate is 1.25%. What is the annual property tax?
- A Delaware property sells for $295,000. The state and county transfer tax combined rate is 4%. If the buyer and seller split this equally, how much does each pay?
- A Delaware investor buys a fourplex for $480,000 with 20% down. Annual NOI is $34,000. Annual debt service is $26,400. What is the debt service coverage ratio (DSCR)?
- A 6-unit apartment building grosses $7,200 per month in rent. Annual operating expenses total $28,800. What is the annual net operating income?
- A Delaware commercial property sold for $2,400,000 with an NOI of $156,000. What is the cap rate?
- A Delaware investor purchases a rental property for $300,000 using a 75% LTV mortgage. What is the loan amount?
- A Delaware property has land value of $80,000 and improvements with a replacement cost of $320,000. The improvements have accumulated depreciation of 30%. What is the total estimated value using the cost approach?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →