Property Valuation
A Kentucky horse farm near Lexington sells for $2,400,000 and has a net operating income of $120,000 per year. What is the capitalization rate?
A3%
B5%✓ Correct
C8%
D10%
Explanation
Cap Rate = NOI ÷ Value = $120,000 ÷ $2,400,000 = 5%. Using the values given ($2,400,000, $120,000), apply the appropriate formula..
Related Kentucky Property Valuation Questions
- A Kentucky building has a replacement cost of $350,000 and has depreciated 20%. The depreciated value is:
- A Kentucky commercial building has a potential gross income of $120,000. Vacancy and collection loss is 6%. Operating expenses are $45,000. What is the NOI?
- In the cost approach, if land value is $50,000, replacement cost new of improvements is $280,000, and total depreciation is 25%, the estimated value is:
- A Kentucky property owner believes their property was assessed at more than fair cash value. The correct order of appeal is:
- The income approach to value is most appropriate for which type of Kentucky property?
- In Kentucky, which of the following would reduce a property's market value?
- A Kentucky appraiser discovers that a comparable sale was a distressed (foreclosure) sale. The appraiser should:
- An appraisal is an estimate of a property's:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →