Real Estate Math
A Minnesota investment property has gross income of $80,000/year, vacancy losses of $4,000, and operating expenses of $28,000. What is the NOI?
A$48,000✓ Correct
B$52,000
C$44,000
D$56,000
Explanation
EGI = Gross Income - Vacancy = $80,000 - $4,000 = $76,000. NOI = EGI - Operating Expenses = $76,000 - $28,000 = $48,000. NOI is a key metric in commercial real estate valuation and is used in the income capitalization approach: Value = NOI / Cap Rate.
Related Minnesota Real Estate Math Questions
- A Minnesota home has a gross rent multiplier (GRM) of 95 and currently generates $1,650/month in rent. What is the estimated market value?
- A property has a gross annual income of $60,000, a vacancy rate of 5%, and operating expenses of $24,000. What is the Net Operating Income (NOI)?
- A Minnesota property has a NOI of $31,500 and the investor paid $350,000. What is the overall capitalization rate?
- A buyer makes an earnest money deposit of 2% on a $450,000 home. How much is the earnest money deposit?
- A Minnesota commercial tenant occupies 3,500 square feet in a building of 20,000 rentable square feet. Their lease requires them to pay their pro-rata share of a $60,000 annual common area maintenance (CAM) charge. What is their annual CAM payment?
- A section of land in Minnesota contains how many acres?
- A Minnesota home sold for $365,000. Using a 6% commission rate with a 55/45 split between listing and buyer's brokerages, how much does the buyer's brokerage receive?
- A Minnesota buyer pays $15,000 down on a $150,000 property. What is the loan-to-value (LTV) ratio?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →