Real Estate Math
A commercial property in Honolulu has an NOI of $180,000 and is capitalized at a 5.5% cap rate. What is its estimated value?
AA. $2,727,273
BB. $3,272,727✓ Correct
CC. $9,900,000
DD. $1,800,000
Explanation
Value = NOI / Cap Rate = $180,000 / 0.055 = $3,272,727. The income capitalization approach divides net operating income by the capitalization rate to estimate property value.
Related Hawaii Real Estate Math Questions
- A Hawaii property generates $144,000 annual gross rent with a 7% vacancy rate. What is the effective gross income?
- A Hawaii property sells for $840,000. The seller has a $525,000 mortgage and pays 5% commission. What are the seller's approximate net proceeds?
- A Hawaii buyer needs to make a 20% down payment on a $575,000 purchase. They currently have $90,000 saved. How much more do they need?
- A Hawaii condo listing has 850 sq ft. The price per square foot is $780. What is the listing price?
- A Hawaii buyer obtains a $350,000 30-year mortgage at 6% interest. The monthly factor is $6.00 per $1,000. What is the total interest paid over the life of the loan?
- A Hawaii house is listed at $925,000. It sells for 96% of listing price with a 5% commission on the sale price. What is the commission?
- A Hawaii buyer puts 30% down on a $550,000 purchase. What is their loan-to-value ratio and loan amount?
- A Hawaii investment property generates $110,000 NOI. Using a 5.5% cap rate, what is the value?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →