Real Estate Math
An Iowa investment property purchased for $350,000 with a 30% down payment. Annual NOI is $28,000. What is the cap rate?
A8%✓ Correct
B11.2%
C7%
D12%
Explanation
Cap Rate = NOI / Purchase Price = $28,000 / $350,000 = 0.08 = 8%.
Related Iowa Real Estate Math Questions
- An Iowa buyer wants to know what percentage of the sale price their $12,000 down payment represents on a $160,000 home purchase.
- An Iowa landlord charges $950/month for a unit. The property taxes are $3,600/year, insurance is $1,200/year, and maintenance is $1,800/year. What is the annual net operating income?
- An Iowa house sold for $252,000. The buyer paid 20% down and financed the rest at 5% for 25 years. Using a factor of $5.85 per $1,000, what is the monthly P&I?
- An Iowa farmland parcel is described as the NW1/4 of Section 12. How many acres does it contain?
- An Iowa property manager charges 8% of monthly gross rents collected as a management fee. Monthly rents collected are $12,500. What is the management fee?
- A buyer in Iowa obtains an 80% LTV mortgage on a $200,000 home. What is the loan amount?
- An Iowa property generates annual gross rents of $48,000. A vacancy and collection loss of 5% is deducted. Operating expenses are $22,000. What is the NOI?
- An Iowa investor purchases a rental property for $150,000 and receives annual gross rents of $18,000. The gross rent multiplier (GRM) is:
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →