Real Estate Math
A property's assessed value is $85,000. The tax rate is 150 mills. What are the annual property taxes?
A$1,275
B$8,500
C$12,750✓ Correct
D$85,000
Explanation
150 mills = $0.150 per dollar of assessed value. Tax = $85,000 × 0.150 = $12,750.150/$1 of assessed value. $85,000 × 0.150 = $12,750. Answer C. Recalculate: mills = per $1,000, so 150 mills = $150/$1,000 = $0.15. $85,000 × 0.15 = $12,750.
Related Kansas Real Estate Math Questions
- A Kansas real estate investor has a property with an annual NOI of $55,000 and a mortgage debt service of $38,000. What is the debt coverage ratio (DCR)?
- A Kansas property was purchased for $225,000. After improvements costing $35,000, it sells for $310,000. Commission is 5.5%. What is the net profit before taxes?
- A Kansas landlord wants a net return of $1,500/month after paying a 10% management fee. What must the monthly gross rent be?
- A Kansas investor purchases a rental property for $320,000. Annual NOI is $28,800. What is the cap rate?
- A Kansas commercial property has an NOI of $96,000. The building value is $800,000 and land value is $200,000. Using a building cap rate of 10% and land cap rate of 8%, what is the overall cap rate?
- A Kansas property with a $150,000 loan balance is sold for $220,000. The broker's commission is 6% and closing costs are $2,500. How much does the seller net?
- A Kansas buyer puts 10% down on a $280,000 home. The lender charges 2 points on the loan. How much are the points?
- A Kansas property is listed at $250,000. The buyer offers $240,000 with a $5,000 earnest money deposit. The listing agent's brokerage receives 3% and buyer's agent's brokerage receives 3%. What is the total commission at accepted offer price?
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →