Real Estate Math
A property has an NOI of $54,000 and is valued using a 7.5% cap rate. What is the estimated property value?
A$405,000
B$540,000
C$720,000✓ Correct
D$810,000
Explanation
Value = NOI ÷ Cap Rate = $54,000 ÷ 0.075 = $720,000.
Related Louisiana Real Estate Math Questions
- 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 Louisiana home's appraised value is $295,000. The tax assessment ratio is 10%. The millage rate is 95 mills, and the owner qualifies for the $7,500 homestead exemption. What is the annual tax bill?
- A Louisiana property's income tax depreciation basis is $325,000 (residential property). Using 27.5-year straight-line depreciation, what is the annual deduction?
- A Louisiana property has potential gross income of $72,000, a 5% vacancy rate, and operating expenses of $28,000. A 9% cap rate is used. What is the estimated 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?
- A Louisiana property sells for $410,000 with a 5.5% commission. The listing broker and selling broker split the commission 50/50. The listing broker splits 60% with the listing agent. How much does the listing agent earn?
- A Louisiana building has a reproduction cost new of $580,000, accrued depreciation of $87,000, and the land value is $95,000. Using the cost approach, the indicated value is:
- A Louisiana property has annual gross rents of $54,000, a 7% vacancy rate, and a 42% operating expense ratio (applied to effective gross income). What is the annual NOI?
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →