Real Estate Math
A Hawaii property has a net income of $36,000 per year and a cap rate of 8%. Using income capitalization, what is the estimated value?
AA. $288,000
BB. $450,000✓ Correct
CC. $360,000
DD. $2,880
Explanation
Value = NOI / Cap Rate = $36,000 / 0.08 = $450,000. To solve this, multiply the relevant values: $36,000 at 8%.. The correct answer is B. $450,000.. This is a common calculation on the Hawaii real estate exam.
Related Hawaii Real Estate Math Questions
- A Hawaii buyer's monthly principal and interest payment is $3,200. Annual property taxes are $4,800 and homeowner's insurance is $2,400. What is the total monthly PITI payment?
- A Hawaii property is assessed at 80% of its market value. The market value is $500,000 and the tax rate is $10 per $1,000. What is the annual property tax?
- A Hawaii property sells for $750,000. The commission rate is 5%. How much commission is earned?
- A Hawaii investor finances $700,000 at 6.5% interest annually. What is the annual interest payment (interest only)?
- A Hawaii property is 2,500 square feet and listed at $250 per square foot. What is the listing price?
- A Hawaii broker receives a total commission of $30,000 and pays the listing salesperson 45% and the buyer's salesperson 30%. How much does the broker keep?
- A Hawaii buyer's closing costs are 3% of the $550,000 purchase price. How much are the closing costs?
- A Hawaii property management company manages 15 properties averaging $3,000/month in rent each. Their fee is 10%. What is monthly revenue for the management company?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →