Real Estate Math
A Massachusetts property has an annual gross income of $54,000, a vacancy rate of 8%, and operating expenses of $22,500. What is the capitalization rate if the property's value is $450,000?
A6.0%
B6.6%✓ Correct
C7.0%
D7.2%
Explanation
EGI = $54,000 × (1 − 0.08) = $54,000 × 0.
Related Massachusetts Real Estate Math Questions
- A Massachusetts agent receives a 3% commission on a $640,000 sale. The agent's broker takes 40% and the agent keeps 60%. How much does the agent earn?
- A Massachusetts buyer purchases a $550,000 home with a $100,000 down payment. What percentage down did they put?
- A Massachusetts duplex generates $2,400/month per unit. Annual operating expenses are $19,200. What is the annual NOI?
- A Massachusetts investor purchases a triple-net (NNN) commercial property for $1,200,000 at a 6% cap rate. The annual NOI is:
- 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 commercial property has annual gross income of $240,000. Operating expenses are 38% of gross income. The resulting NOI is:
- A Massachusetts seller wants to net $400,000 after paying a 5% commission. What must the minimum sale price be?
- A Massachusetts property has a monthly rent of $2,600 and sells for $390,000. What is the annual GRM?
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →