Real Estate Math
A Montana investor has gross rent of $36,000 and operating expenses (excluding debt service) of $14,400. The property cost $280,000. What is the capitalization rate?
A5.14%
B7.71%✓ Correct
C12.86%
D4.29%
Explanation
NOI = $36,000 - $14,400 = $21,600. Cap rate = NOI / Value = $21,600 / $280,000 = 0.
Related Montana Real Estate Math Questions
- A Montana investor bought a commercial property for $500,000 and depreciates the improvements (valued at $400,000) over 39 years for tax purposes. What is the annual depreciation deduction?
- A Montana investment property was purchased for $400,000 and sold 5 years later for $480,000. What is the percentage appreciation over the holding period?
- A Montana single-family home sold for $312,000. The buyer's agent received 2.5% and the listing agent received 3% of the sale price. What was the total commission paid by the seller?
- A Montana seller is in the 20% long-term capital gains tax bracket. They sell an investment property for $480,000 with an adjusted basis of $280,000. What is their federal capital gains tax (excluding state taxes and depreciation recapture)?
- A Montana investor's property generates $48,000 annual NOI and they want a 6.5% cap rate return. What is the indicated value?
- A Montana buyer is purchasing a property using an FHA loan (3.5% down). The purchase price is $260,000. What is the down payment and loan amount?
- A Montana ranch sells for $840,000. The listing broker and buyer's broker split the 5% commission equally. If each brokerage then pays their agent a 60/40 split (agent gets 60%), how much does the buyer's agent receive?
- A Montana ranch sells for $1.8 million. The listing broker receives 3% of the sale price. The listing agent on their team receives 40% of the listing side. What does the listing agent receive?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →