Real Estate Math
A New Mexico investor purchases a rental house for $220,000 with a $44,000 down payment (20%). The monthly cash flow after all expenses and debt service is $450. What is the annual cash-on-cash return?
A9.8%
B12.3%✓ Correct
C12.0%
D10.0%
Explanation
Annual cash flow = $450 × 12 = $5,400. Cash-on-cash return = $5,400 / $44,000 = 0.
Related New Mexico Real Estate Math Questions
- A lender requires a debt-to-income ratio (DTI) of no more than 43%. A borrower earns $7,000/month gross and has $500/month in other debt. What is the maximum new housing payment allowed?
- A property in Albuquerque sold for $410,000. Using a 5% commission, how much does the listing side earn if commissions are split 50/50?
- A buyer in New Mexico puts $20,000 down and pays 1 origination point on a $200,000 loan. What is the total upfront cost excluding down payment?
- A seller paid $180,000 for a home five years ago. It sold today for $243,000. What is the percentage of appreciation?
- A real estate license exam question: a parcel measures 1/4 mile by 1/4 mile. How many acres does it contain?
- If a New Mexico property's market value increased from $275,000 to $330,000 over 5 years, what is the total percentage increase?
- A New Mexico property sold for $395,000. Using a 6% commission split 50/50 between listing and selling brokerages, and each brokerage pays the associated agent 55% of their share, how much does the listing agent earn?
- A New Mexico rental property generates $2,800/month rent. The property taxes are $2,400/year, insurance is $1,200/year, and maintenance is $3,000/year. What is the annual NOI?
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →