Real Estate Math
A NJ property generates $14,400 per month in gross rent. Annual operating expenses total $68,000. At a 6% cap rate, what is the estimated property value?
A$2,587,000
B$1,746,667✓ Correct
C$1,800,000
D$2,400,000
Explanation
Annual gross rent = $14,400 × 12 = $172,800. NOI = $172,800 – $68,000 = $104,800. Value = $104,800 ÷ 0.06 = $1,746,667 ≈ $2,153,333 if we recalculate. Let me recheck: $172,800 – $68,000 = $104,800; $104,800 ÷ 0.06 = $1,746,667. Using $172,800 – $68,000 = $104,800 ÷ 0.06 = $1,746,667.06 but that Correct answer based on math: $1,746,667 closest to B.
Related New Jersey Real Estate Math Questions
- A New Jersey home sells for $520,000. The total commission is 5%, split 50/50 between listing and selling brokerages. The listing agent receives 60% of their brokerage's share. How much does the listing agent earn?
- A NJ seller's net sheet shows: sale price $580,000; broker commission 5%; attorney fee $2,500; transfer tax $2,320; mortgage payoff $310,000; other closing costs $1,800. What are the seller's approximate net proceeds?
- A buyer purchases a $475,000 home with a 20% down payment. What is the loan amount, and if the interest rate is 7% annually, what is the first month's interest charge?
- A NJ property has a net operating income (NOI) of $48,000 and a cap rate of 6%. What is the estimated value?
- A listing broker and selling broker agree to split a 6% commission 50/50 on a $600,000 NJ sale. How much does each broker receive?
- A NJ homebuyer is told the monthly PITI payment is $3,200. If the lender requires a maximum 28% housing ratio, what minimum gross monthly income is required?
- A NJ seller's home was purchased for $300,000 and sold for $375,000. What is the percentage gain?
- A NJ seller paid $375,000 for their home 8 years ago. Annual appreciation averaged 4%. What is the approximate current value?
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →