Real Estate Math
A Louisiana property earns $2,200 per month net. An investor needs an 8% annual return on investment. What is the maximum price to pay?
A$275,000
B$330,000✓ Correct
C$297,000
D$316,500
Explanation
Annual NOI = $2,200 × 12 = $26,400. Maximum price = $26,400 ÷ 0.
Related Louisiana Real Estate Math Questions
- A seller lists their home at $398,000 and accepts an offer at 97% of list price. What is the sale price?
- A Louisiana investor wants a 9% return on a $450,000 investment in rental property. What annual NOI is required to achieve this return?
- A Louisiana property assessment increased from $18,000 to $21,600. By what percentage did the assessment increase?
- A Louisiana property has an acquisition cost of $250,000 (including land valued at $50,000). The building's cost basis for depreciation is:
- A property has an NOI of $54,000 and is valued using a 7.5% cap rate. What is the estimated property value?
- A rental property generates $2,500 per month in gross rent. The GRM in the market is 120. What is the estimated property value?
- A Louisiana REALTOR® sold $4,200,000 in properties over the year. If their average commission rate was 2.8% (buyer's agent side), what did they earn before broker split?
- A Louisiana property's NOI is $67,500. If an investor requires a 7.2% cap rate, what is the maximum they should pay?
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →