Real Estate Math
A Mississippi commercial building is valued at $1,200,000. The building was purchased 4 years ago for $1,000,000. The total appreciation over 4 years as a percentage of the original purchase price is:
A20%✓ Correct
B16.7%
C5% per year
D25%
Explanation
Total appreciation = ($1,200,000 - $1,000,000) ÷ $1,000,000 = $200,000 ÷ $1,000,000 = 0.20 = 20%. The property appreciated 20% in total over 4 years (approximately 4.7% per year on a compounded basis).
Related Mississippi Real Estate Math Questions
- A Mississippi property manager collects $45,000 in annual gross rents and charges a management fee of 8% of collected rents. The annual management fee is:
- A Mississippi rental property generates $2,800 per month in rent. The owner wants to sell at a price representing a gross rent multiplier (GRM) of 10. What is the listing price?
- A Mississippi real estate agent earns 2.5% commission on a $320,000 sale. Their broker takes 30% and the agent keeps 70%. The agent's net commission is:
- A Mississippi investor receives $1,800 per month net rent on a property purchased for $216,000. The annual cash-on-cash return (assuming no financing) is:
- A Mississippi property was listed at $289,000 and sold for $275,000. The sale-to-list price ratio is approximately:
- A Mississippi property has annual effective gross income of $72,000. Operating expenses are $29,000. Debt service is $22,000. Annual cash flow (before taxes) is:
- A Mississippi home purchased for $195,000 appreciates at 4% annually for 3 years. The value after 3 years is approximately:
- A Mississippi commercial lease requires the tenant to pay their pro-rata share of property taxes. The building has 40,000 SF total. The tenant leases 8,000 SF. Annual property taxes are $60,000. The tenant's annual tax obligation is:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →