Real Estate Math
An Iowa real estate investor purchases a 4-unit apartment building for $280,000 and wants to achieve a 10% cash-on-cash return. If the down payment is 25%, what annual cash flow is needed?
A$7,000✓ Correct
B$28,000
C$70,000
D$14,000
Explanation
Down payment = $280,000 x 0.25 = $70,000. Cash-on-cash return = Annual Cash Flow / Cash Invested. Target cash flow = $70,000 x 0.10 = $7,000.
Related Iowa Real Estate Math Questions
- An Iowa buyer making a $185,000 offer requests a $3,500 seller concession toward closing costs. The seller counters at $183,000 with no concession. Which is the lower net cost to the seller?
- A homeowner wants to net $210,000 after paying a 6% commission. At what price must the home sell?
- An Iowa farmland parcel is described as the SW¼ of the NW¼ of Section 12. How many acres is this parcel?
- An Iowa home listed at $349,900 sells for 97% of list price. What is the sale price?
- An Iowa home is assessed at 100% of market value at $240,000. The local mill rate is 32 mills. What are the annual property taxes?
- An Iowa buyer's mortgage has a monthly P&I payment of $1,347 and monthly taxes/insurance of $385. What is the total monthly PITI payment?
- A buyer agrees to purchase a lot that is 150 feet wide and 200 feet deep at a price of $3 per square foot. What is the total purchase price?
- An Iowa seller nets $190,000 after a 6% commission and $3,000 in closing costs. What was the sale price?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →