Real Estate Math
A Nebraska commercial property generates $245,000 in NOI. At a 7% cap rate, what is the maximum purchase price a buyer should pay?
A$3,500,000✓ Correct
B$3,350,000
C$2,800,000
D$4,000,000
Explanation
Value = NOI ÷ Cap rate = $245,000 ÷ 0.07 = $3,500,000. To solve this, multiply the relevant values: $245,000 at 7%.. The correct answer is $3,500,000.. This is a common calculation on the Nebraska real estate exam.
Related Nebraska Real Estate Math Questions
- A Nebraska listing expired December 31. The broker is entitled to a commission if a sale occurs within the protection period to a buyer who was first shown the property during the listing. The listing was for 6% on a $290,000 sale. The commission is:
- A buyer finances $240,000 at 4.5% annual interest. What is the interest charged in the first month?
- A salesperson receives 60% of the commission and the broker receives 40%. The total commission on a $280,000 sale at 5.5% is split how much to the salesperson?
- A Nebraska commercial lease has a base rent of $2,000/month plus 5% of monthly gross sales over $25,000. If the tenant's monthly sales are $40,000, what is the total monthly rent?
- A property's assessed value is $150,000 and the tax rate is $1.80 per $100 of assessed value. What are the annual taxes?
- A home appreciates 4% per year. If it is currently worth $250,000, what will it be worth in 2 years?
- An investor pays $550,000 for a building and wants a 9% annual return. What annual NOI is required?
- A rental property produces NOI of $36,000 per year. If a buyer requires an 8% return, what would they pay for the property?
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →