Real Estate Math
A Montana property has gross rents of $48,000/year, vacancy and credit losses of $2,400, operating expenses of $18,000, and annual debt service of $16,800. What is the Net Operating Income (NOI)?
A$10,800
B$27,600✓ Correct
C$45,600
D$12,600
Explanation
Effective Gross Income = $48,000 - $2,400 = $45,600. NOI = EGI - Operating Expenses = $45,600 - $18,000 = $27,600.
Related Montana Real Estate Math Questions
- A Missoula home buyer is applying for a 30-year mortgage. Principal and interest payment is $1,450/month. First month's interest is $1,200. How much principal is paid in the first month?
- A Billings duplex generates $1,800/month per unit. Annual operating expenses total $12,000. What is the annual net operating income?
- A quarter section of land contains:
- A Montana homeowner's property is assessed at $85,000 (taxable value) and the mill levy is 180 mills. What is the annual property tax?
- A property's assessed value is $240,000. The assessment ratio is 60% of market value. What is the estimated market value?
- 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 commercial property has 5,000 square feet of leasable space at $18/sq ft per year. What is the annual gross rent?
- A Montana commercial property produces $120,000 NOI. A buyer wants a 9% return. What is the maximum purchase price they would pay?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →