Real Estate Math
A Michigan investor pays $500,000 for a commercial building and expects an 8% return on investment. What annual NOI is required?
A$30,000
B$40,000✓ Correct
C$45,000
D$50,000
Explanation
NOI = Investment x Required Return = $500,000 x 0.08 = $40,000.
Related Michigan Real Estate Math Questions
- A Michigan home sold for $310,000. The seller agreed to pay a 5.5% commission. How much was the total commission?
- A Michigan home sold for $298,000. The county transfer tax is $0.55 per $500 (or fraction). What is the county transfer tax?
- A Michigan commercial property sells for $1,800,000. The state transfer tax is $3.75 per $500 and the county transfer tax is $0.55 per $500. What is the total transfer tax?
- A Michigan property has an assessed value (SEV) of $95,000. If this represents 50% of market value, what is the market value?
- A Michigan property has a taxable value of $140,000. The total millage rate is 50 mills. What is the annual property tax?
- A Michigan buyer is purchasing a $350,000 home. The lender requires PMI at 0.85% of the loan amount annually. With 10% down, what is the monthly PMI payment?
- A Michigan seller paid $185,000 for a home 3 years ago and is now selling it for $235,000. What is the dollar appreciation?
- A Michigan home's assessed value is $160,000. The property tax millage rate is 42 mills. What is the annual property tax?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →