Real Estate Math
A Kentucky investment property has a gross rent of $60,000/year. The appraiser uses a GIM of 8 to estimate value. What is the estimated value?
A$420,000
B$480,000✓ Correct
C$540,000
D$600,000
Explanation
Value = Annual Gross Income × GIM = $60,000 × 8 = $480,000. Using the values given ($60,000), apply the appropriate formula.. The correct answer is $480,000.. This is a common calculation on the Kentucky real estate exam.
Related Kentucky Real Estate Math Questions
- A Kentucky home sells for $350,000. The seller pays a 5.5% commission. How much does the seller net after commission?
- A Kentucky property sells for $185,000. The listing broker charges a 6% commission. The listing broker splits the commission 50/50 with the buyer's broker. How much does each broker receive?
- A listing agent earns 60% of the total 6% commission on a $180,000 sale. How much does the listing agent earn?
- A Kentucky property sold for $275,000 with a 6% commission. The listing broker retains 40% and the selling broker receives 60%. How much does the selling broker receive?
- A Kentucky investor buys a duplex for $180,000. Annual gross rent is $18,000. What is the gross rent multiplier (GRM)?
- A Kentucky buyer's monthly mortgage payment is $1,440. If the annual interest rate is 6% and the loan amount is $200,000, what portion of the first payment is principal?
- A Kentucky property owner makes monthly mortgage payments of $1,250. The annual interest rate is 6% and the loan balance is $200,000. How much of the first month's payment goes toward principal?
- A Kentucky real estate investor's property was purchased for $200,000 and appreciated 4% annually for 5 years. What is the approximate value at the end of 5 years?
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →