Real Estate Math
A property has an NOI of $42,000 and the investor wants a 7% return. What is the value?
A$500,000
B$560,000
C$600,000✓ Correct
D$630,000
Explanation
Value = NOI ÷ Cap Rate = $42,000 ÷ 0.07 = $600,000.
Related Kentucky Real Estate Math Questions
- A Kentucky property owner wants to fence in a rectangular lot measuring 120 feet by 300 feet. How many linear feet of fence is needed for the perimeter?
- A Kentucky investor buys a 4-unit building at $320,000. Each unit rents for $900/month. What is the monthly GRM?
- A Kentucky property has a net operating income of $42,000 and sells for $525,000. What is the capitalization rate?
- A Kentucky property has a market rent of $1,400/month but current rent is $1,100/month. The appraiser determines that the market value based on market rent at a 125 GRM is:
- A property's assessed value is $180,000 and the tax rate is 15 mills. What is the annual property tax?
- An agent's commission is $12,600 on a sale at a 6% rate. What was the sale price?
- A lot is 150 feet wide and 200 feet deep. How many square feet is the lot?
- A Kentucky property is sold for $335,000. The listing broker's commission is 6% split equally between listing and selling brokers. The listing salesperson earns 70% of the listing broker's share. How much does the listing salesperson earn?
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →