Real Estate Math
A 12-unit Nebraska apartment building has a gross rent multiplier (GRM) of 130 based on monthly rent. All units rent for $850/month. What is the estimated value?
A$1,326,000✓ Correct
B$1,152,000
C$1,560,000
D$1,404,000
Explanation
Total monthly rent = 12 × $850 = $10,200. Estimated value = $10,200 × 130 = $1,326,000. Using the values given ($850), apply the appropriate formula.. The correct answer is $1,326,000.. This is a common calculation on the Nebraska real estate exam.
Related Nebraska Real Estate Math Questions
- An Omaha commercial lease is 4,500 sq ft at $22/sq ft/year on a gross basis. The landlord pays $8,000/year in property taxes, $3,500 in insurance, and $9,500 in maintenance. What is the annual NOI?
- A property's potential gross income is $60,000 per year. The vacancy rate is 5% and operating expenses are $20,000. What is the net operating income?
- If a property sells for $340,000 and the buyer's costs are 3% of the purchase price for closing, what are the total closing costs?
- A commercial property generates monthly gross rents of $8,500. The GRM for the area is 120. What is the estimated value?
- A property with a potential gross income of $90,000, 8% vacancy, and $32,000 in operating expenses has a NOI of:
- A 200-unit apartment complex has an average monthly rent of $875/unit, a 6% vacancy rate, and annual operating expenses of $1,082,000. What is the annual NOI?
- A Nebraska home is assessed at 100% of market value of $310,000. The tax rate is 2.25%. What are the annual property taxes?
- A Nebraska buyer's agent refers a buyer to an out-of-state agent for a property in Colorado and receives a 25% referral fee on the receiving agent's 3% commission on a $500,000 sale. The referral fee is:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →