Real Estate Math
A Florida investor purchases an apartment building for $750,000 and puts 25% down. The annual NOI is $60,000. What is the cash-on-cash return on the down payment?
A8%✓ Correct
B12.5%
C10.67%
D6.67%
Explanation
Down payment = $750,000 × 25% = $187,500. Cash-on-cash = NOI ÷ Down Payment = $60,000 ÷ $187,500 = 0.
Related Florida Real Estate Math Questions
- A Florida landlord has a 10-unit apartment building. 8 units rent for $950/month and 2 units rent for $1,100/month. The vacancy rate is 10%. What is the annual effective gross income?
- What is the documentary stamp tax on a deed for a Florida property that sold for $425,000? (Rate: $0.70 per $100)
- A Florida property has an assessed value of $220,000. The homestead exemption reduces it by $50,000. With a millage rate of 20 mills, what is the annual property tax?
- A property's annual net operating income is $36,000. If the cap rate is 8%, what is the property's estimated value?
- A Florida buyer pays $350,000 for a property. The buyer pays $70,000 down and finances the remainder. The monthly principal and interest payment is $1,495. After 5 years of payments (60 payments), the loan balance is $260,000. What is the total amount of interest paid in the first 5 years?
- A Florida investor wants to receive a 10% cash-on-cash return on their $100,000 down payment investment. The property has a monthly mortgage payment of $800 and monthly operating expenses of $300. What minimum monthly rent must the investor charge?
- A Florida property has a legal description of 'the N 1/2 of the NE 1/4 of Section 15.' How many acres does this parcel contain?
- A Florida buyer makes a $35,000 down payment on a $350,000 home. The LTV ratio is:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →