Real Estate Math
A real estate investor in Indiana purchases a property for $250,000 with 25% down. The annual NOI is $22,500. What is the cap rate?
A7.2%
B8%
C9%✓ Correct
D12%
Explanation
Cap rate = NOI ÷ Purchase Price = $22,500 ÷ $250,000 = 0.09 = 9%. Cap rate uses total purchase price, not the equity invested.
Related Indiana Real Estate Math Questions
- A buyer in Indiana assumes a mortgage with a $145,000 balance at 4.5%. The current rate for new loans is 7%. What is the monthly interest savings versus a new loan on the same balance?
- A property generates annual gross rent of $42,000, has a 5% vacancy rate, and operating expenses of $15,000. What is the NOI?
- An Indiana investment property generates a monthly gross rent of $2,200. Using a GRM of 110, what is the estimated value?
- A property has an effective gross income of $96,000 and an operating expense ratio of 40%. What is the NOI?
- A commercial property sold for $1,200,000 with a 4% commission. If the listing broker and cooperating broker split it 60/40, how much does the cooperating broker receive?
- A 40-acre Indiana farm sells for $8,500 per acre. What is the total sale price?
- A home was purchased for $200,000 and sold for $245,000. What is the percentage gain?
- A home in Bloomington, Indiana has a taxable assessed value of $220,000. The tax rate is 1.85% of assessed value. What is the annual property tax?
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →