Real Estate Math
A Montana real estate investor buys a property for $400,000, puts $50,000 in improvements, and sells it for $520,000, paying $31,200 in commissions and $5,000 in other closing costs. What is the net profit?
A$120,000
B$33,800✓ Correct
C$84,800
D$95,000
Explanation
Profit = Sale price - (Purchase price + Improvements + Selling costs) = $520,000 - ($400,000 + $50,000 + $31,200 + $5,000) = $520,000 - $486,200 = $33,800.
Related Montana Real Estate Math Questions
- A Missoula rental home has a gross rent multiplier (GRM) of 14 and generates $24,000 in annual gross rent. What is the estimated value?
- 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 takes back a purchase money mortgage for $125,000 at 6% interest, with monthly payments of $750, and a balloon payment due in 7 years. What is the monthly interest on the original balance?
- A Montana property's gross rent multiplier (GRM) is 10. Monthly gross rent is $1,800. What is the estimated property value?
- A Montana rental property has potential gross income of $54,000, vacancy of 6%, operating expenses of $18,000, and debt service of $14,400. What is the debt service coverage ratio (DSCR)?
- A Montana property is listed for $425,000 and a buyer offers $400,000. What percentage below list price is the offer?
- A Montana home was purchased for $185,000 five years ago. It has appreciated at an average rate of 4% per year. What is the approximate current value?
- A Montana property has a market value of $300,000. The lender will loan 80% LTV. The buyer has $45,000 for a down payment. Can the buyer qualify for this property?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →