Real Estate Math
A Louisiana investment property has annual gross income of $36,000, vacancy and credit losses of 5%, and operating expenses of $12,000. What is the net operating income (NOI)?
A$22,200✓ Correct
B$24,000
C$34,200
D$24,200
Explanation
Effective Gross Income = $36,000 − ($36,000 × 5%) = $36,000 − $1,800 = $34,200. NOI = $34,200 − $12,000 = $22,200.
Related Louisiana Real Estate Math Questions
- A Louisiana investor purchased a rental for $175,000 and sold it for $210,000 two years later. The original closing costs were $3,500 and selling costs were $12,600. What is the net gain?
- A Louisiana single-family home has a replacement cost of $245,000 (structure only, not land). Using a 27.5-year residential depreciation period, what is the annual IRS depreciation deduction?
- A home sells for $425,000. The seller pays a 5.5% commission. How much is the total commission?
- A buyer obtains a $200,000 mortgage at 6% for 30 years. The monthly principal and interest payment (PI) is $1,199.10. After the first month, how much of the payment goes to principal?
- A Louisiana property selling for $310,000 has an existing mortgage balance of $145,000. The seller's closing costs total $22,400. What are the seller's net proceeds?
- A Louisiana industrial building contains 45,000 sq ft and rents for $4.50 per sq ft per year. With a 6% vacancy rate, what is the annual effective gross income?
- A Louisiana property owner receives a $6,800 annual property tax bill. The assessment ratio is 10% and the millage rate is 100 mills. What is the property's approximate market value?
- A Louisiana homeowner's property is appraised at $285,000. The assessment ratio is 10% and the millage rate is 88 mills. After the $7,500 homestead exemption, what is the annual tax?
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →