Real Estate Math
A Michigan property has an NOI of $45,000 and was purchased at a 7.5% cap rate. What was the purchase price?
A$337,500
B$450,000
C$600,000✓ Correct
D$562,500
Explanation
Value = NOI / Cap Rate = $45,000 / 0.075 = $600,000. To solve this, multiply the relevant values: $45,000 at 7.5%.. The correct answer is $600,000.. This is a common calculation on the Michigan real estate exam.
Related Michigan Real Estate Math Questions
- A Michigan seller nets $285,000 after paying a 5.5% commission and $8,000 in closing costs. What was the sale price?
- A Michigan property is listed at $375,000. After 45 days it is reduced by 8%. What is the new listing price?
- A Michigan investment property has a cap rate of 7% and an NOI of $63,000. What is the estimated value?
- A Michigan property sold for $195,000. The buyer paid 20% down. What is the loan amount?
- A Michigan property has an NOI of $50,000 and sells at a 7.5% cap rate. What is the sale price?
- A buyer puts 10% down on a $275,000 home. The lender charges a 1% origination fee. How much is the origination fee?
- A Michigan seller agrees to pay 3.5% commission. The house sells for $325,000. The commission amount is:
- A Michigan home sells for $415,000. The seller agreed to pay a 5.5% commission. What is the total commission?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →