Real Estate Math
A Kansas property's net operating income is $42,000 and the cap rate is 8%. What is the estimated value?
A$420,000
B$525,000✓ Correct
C$336,000
D$480,000
Explanation
Value = NOI ÷ Cap Rate = $42,000 ÷ 0.08 = $525,000.
Related Kansas Real Estate Math Questions
- A Kansas buyer finances $195,000 at 6.5% for 30 years. The monthly payment factor is $6.32 per $1,000. What is the monthly P&I payment?
- A section of land in Kansas contains how many acres?
- A Kansas property has potential gross income of $48,000, a 6% vacancy rate, and annual operating expenses of $16,500. What is the NOI?
- A Kansas property has potential gross income of $54,000. Vacancy loss is 5%. What is the effective gross income?
- A Kansas home appraises for $240,000. The lender lends at 80% LTV. The purchase price is $235,000. What is the maximum loan amount?
- A Kansas listing agent's commission is 3% on a $420,000 sale. The agent gives their broker a 30% cut. How much does the agent net?
- A Kansas apartment building has 12 units. 10 are occupied at $850/month. What is the monthly vacancy loss?
- A Kansas property management company manages 50 units averaging $750/month rent with 5% vacancy. The management fee is 10% of collected rents. What is the annual management fee?
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →