Real Estate Math
An investor paid $650,000 for a property that generates $78,000 in annual NOI. What is the cap rate?
A10%
B11%
C12%✓ Correct
D13%
Explanation
Cap rate = $78,000 ÷ $650,000 = 0.12 = 12%.
Related New Jersey Real Estate Math Questions
- A NJ property manager charges 8% of collected rents for their services. If annual gross collected rent is $144,000, what is the annual management fee?
- A NJ building has 8 units all renting at $1,650/month with a 6% vacancy rate. Annual operating expenses are $40,000. What is the annual NOI?
- A NJ investor purchases a $400,000 property with a 5% cap rate. After improvements, the NOI increases from $20,000 to $26,000. If cap rates remain at 5%, what is the new property value?
- A NJ property's assessed value is $375,000 at a 95% equalization ratio. What is the estimated market value?
- A NJ mortgage is for $360,000 at 5.5% annual interest. Using simple interest for the first month, what is the interest portion of the first payment?
- A NJ property's appraised value is $525,000. The lender will lend up to 80% LTV. If the buyer must make up the remaining 20%, how much is the down payment?
- Using the income approach, a NJ office building with a NOI of $85,000 is valued at $1,062,500. What cap rate was applied?
- A NJ property has a list price of $725,000. The buyer offers $710,000 and the seller counter-offers at $718,000. If the buyer accepts, how much will the 5% commission be?
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 →