Real Estate Math
A Louisiana property has a NOI of $48,000 and was purchased for $640,000. What is the capitalization rate?
A6.5%
B7.0%
C7.5%✓ Correct
D8.0%
Explanation
Cap Rate = NOI ÷ Value = $48,000 ÷ $640,000 = 0.075 = 7.
Related Louisiana Real Estate Math Questions
- A broker charges a 6% commission on a $350,000 sale. The listing agent receives 60% of the listing broker's share, which is 50% of the total commission. How much does the listing agent earn?
- A Louisiana property has a market value of $320,000 and is assessed at 10%. If the millage rate is 75 mills, what is the annual tax bill before any exemption?
- A Louisiana real estate agent's goal is to earn $90,000 this year. If the average commission per transaction is $7,500, how many transactions do they need to close?
- A Louisiana agent earns a 3% commission on a $290,000 sale. How much does the agent earn?
- A property is purchased for $160,000 and the buyer makes a 5% down payment. What is the loan amount?
- A Louisiana property in a 100-year floodplain requires flood insurance. The annual premium is $2,400. The property's market value is $280,000 and the annual property tax is $2,100. Combined, what are the annual carrying costs for insurance (flood only) and taxes?
- An agent receives 2.5% of a $445,000 sale price. How much commission does the agent earn?
- A rectangular commercial lot in Louisiana measures 150 feet by 200 feet. What is its area in acres?
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →