Real Estate Math
A New Mexico property has a potential gross income of $80,000. The vacancy factor is 7% and operating expenses are $25,000. What is the NOI?
A$49,400✓ Correct
B$55,000
C$41,990
D$51,200
Explanation
EGI = $80,000 × (1 - 0.07) = $80,000 × 0.93 = $74,400. NOI = $74,400 - $25,000 = $49,400. To solve this, multiply the relevant values: $80,000 and $25,000 at 7%.. The correct answer is $49,400.. This is a common calculation on the New Mexico real estate exam.
Related New Mexico Real Estate Math Questions
- A New Mexico property has a market value of $450,000. The annual property tax rate is 20 mills. In New Mexico, residential property is assessed at 1/3 of market value. What is the annual property tax?
- A New Mexico property is listed at $390,000. After 60 days, the price is reduced by 5%. What is the new listing price?
- A New Mexico buyer qualifies for a loan up to 28% of their gross monthly income for PITI. If they earn $6,000/month, what is the maximum monthly PITI?
- A New Mexico property sold for $380,000. The NM Real Estate Transfer Tax is $1.50/$500. What is the transfer tax due?
- A New Mexico duplex generates $1,800/month per unit in rent. Annual operating expenses are $14,400. What is the annual NOI?
- A New Mexico commercial property is valued at $1.2 million using an 8% cap rate. If the cap rate increases to 10%, what is the new estimated value?
- A property sold for $425,000. The total commission rate is 6%. The listing office and selling office each receive 50% of the commission. How much does each office receive?
- A New Mexico commercial property sells for $2,400,000 with a cap rate of 6.5%. 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 →