Real Estate Math
A real estate broker in Indiana pays $2,400/month in office rent. This annual expense must be covered by commissions. If the average commission is $9,000 per transaction, how many transactions per year just cover rent?
A2
B3
C4✓ Correct
D5
Explanation
Annual rent = $2,400 × 12 = $28,800. Transactions needed = $28,800 ÷ $9,000 = 3.
Related Indiana Real Estate Math Questions
- An Indiana homestead deduction reduces an assessed value from $240,000 to $195,000. The tax rate is 1.5%. What are the annual taxes after the deduction?
- An Indiana commercial building has 15,000 usable square feet. The building's load factor is 15%. What is the rentable square footage?
- An Indiana residential property that last sold for $198,000 is now listed at $249,000. What is the percentage increase in value?
- An Indiana seller accepts a 6% commission on a $510,000 sale. The commission is split 50/50. The listing agent at the brokerage receives 45% of the listing broker's half. How much does the listing agent earn?
- An Indiana property valued at $520,000 has land worth $80,000. The building has a remaining economic life of 35 years. Using straight-line depreciation, what is the annual depreciation allowable for tax purposes (non-residential: 39 years)?
- A commercial tenant in Indianapolis pays monthly rent of $8,500. Annual rent escalation is 3% per year. What will the monthly rent be in year 3?
- An Indiana investor's property has a purchase price of $550,000, annual NOI of $44,000, and annual debt service of $36,000. What is the equity dividend (cash-on-cash) rate if they put 25% down?
- An Indiana appraisal finds that the subject's bedroom count is one less than a comparable. The bedroom adjustment is $5,000. If the comparable sold for $248,000, what is the adjusted value?
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →