Real Estate Math
An Illinois property generates monthly rent of $1,850. The investor paid $190,000 cash. What is the annual gross yield?
A10.3%
B11.7%✓ Correct
C9.8%
D12.1%
Explanation
Annual gross rent = $1,850 × 12 = $22,200. Annual gross yield = Annual Rent ÷ Purchase Price = $22,200 ÷ $190,000 = 0.
Related Illinois Real Estate Math Questions
- A property valued at $520,000 has a gross rent multiplier (GRM) of 14.5. What is the annual gross rent?
- A 20-unit apartment complex has gross rents of $30,000/month. Operating expenses are 45% of effective gross income. Vacancy is 5%. What is the annual NOI?
- What is the annual GRM for a property priced at $390,000 that rents for $2,750 per month?
- A buyer obtains a $300,000 mortgage at 5% annual interest. What is the first month's interest payment?
- A property has monthly rental income of $3,500 and an operating expense ratio of 40%. What is the annual net operating income (NOI)?
- A buyer qualifies for a maximum monthly PITI payment of $2,200. Property taxes are $300/month and homeowner's insurance is $100/month. At 7% for 30 years, the monthly principal and interest factor is $6.65 per $1,000 borrowed. What is the maximum loan amount?
- A home purchased for $250,000 appreciates at 4% per year. What is its value after 2 years?
- A duplex has an annual gross income of $28,800. If comparable properties in the market sell at a GRM of 12, what is the estimated value?
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →