Real Estate Math
A Massachusetts lender requires a DSCR of 1.20. If annual debt service is $72,000, what minimum annual NOI is required to qualify?
A$86,400✓ Correct
B$72,000
C$60,000
D$90,000
Explanation
Required NOI = Debt Service × DSCR = $72,000 × 1.20 = $86,400. Using the values given ($72,000,), apply the appropriate formula.. The correct answer is $86,400.. This is a common calculation on the Massachusetts real estate exam.
Related Massachusetts Real Estate Math Questions
- A property's assessed value is 65% of its market value of $510,000. The tax rate is $13.20 per $1,000. What is the annual property tax?
- A Massachusetts investor purchases a duplex for $420,000. Annual gross rents total $36,000 and operating expenses are $14,400. What is the cap rate?
- A Massachusetts property sells for $875,000. The deed excise tax is $4.56 per $1,000. What is the excise tax?
- A Massachusetts property is listed at $579,000. After 90 days, the seller offers a 2% reduction. The reduced price is:
- A Massachusetts commercial space is 4,200 square feet. The annual rent is $52,500. What is the monthly rent per square foot?
- A home sells for $525,000. The buyer pays a 20% down payment and finances the rest. The lender charges 1.5 discount points on the loan. How much will the buyer pay in discount points?
- A Massachusetts property sold for $520,000. The buyer paid 10% down and obtained a mortgage for the balance. The lender charges a 1% origination fee. What is the origination fee?
- A Massachusetts property manager charges a leasing fee of one month's rent for finding a new tenant. The monthly rent is $2,800. The manager also charges 8% of monthly rents for management. Over a 12-month lease, what are total fees?
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →