Real Estate Math
A property has a potential gross income of $75,000, vacancy of 8%, and operating expenses of $28,000. Using a cap rate of 8%, estimate the property value.
AA. $512,500✓ Correct
BB. $662,500
CC. $533,250
DD. $590,000
Explanation
EGI = $75,000 × (1 − 0.08) = $75,000 × 0.
Related Georgia Real Estate Math Questions
- A $400,000 mortgage at 6% annual interest, 30-year term, has a monthly payment factor of $5.996 per $1,000. What is the approximate monthly P&I payment?
- Calculate the Georgia transfer tax on a home that sells for $189,500.
- A property's net operating income is $45,000. The property is valued at $562,500. What is the cap rate?
- A listing broker charges a 6% commission on the first $100,000 and 4% on the remaining amount. If a property sells for $350,000, what is the total commission?
- A property purchased for $180,000 with 25% down is financed with a $135,000 mortgage. After 5 years the balance is $128,000. What is the owner's equity if the property value is now $210,000?
- A monthly rent of $1,800 is being raised by 3%. What is the new monthly rent?
- A 30-year mortgage for $200,000 at 6% per year has a monthly payment of approximately $1,199. Over the life of the loan, the total amount paid is approximately:
- An investor wants a 10% cash-on-cash return on a $100,000 down payment. What annual before-tax cash flow is required?
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →