Real Estate Math
A New Mexico property management company charges 8% of gross monthly rents. If monthly gross rent collected is $12,500, what is the monthly management fee?
A$800
B$1,000✓ Correct
C$1,250
D$1,500
Explanation
$12,500 × 0.08 = $1,000 monthly property management fee. To solve this, multiply the relevant values: $12,500, at 8%.. The correct answer is $1,000.. This is a common calculation on the New Mexico real estate exam.
Related New Mexico Real Estate Math Questions
- An investor buys a 4-plex in Albuquerque for $480,000 and rents each unit for $900/month. What is the gross rent multiplier (GRM)?
- An investor purchases a rental property for $180,000 and receives annual net income of $14,400. What is the capitalization rate?
- A New Mexico 4-unit residential building sells for $520,000. The annual gross rent is $52,000. What is the GRM?
- A New Mexico investor purchases a property for $380,000, using a 25% down payment. What is the loan amount and what is the LTV?
- A New Mexico broker receives a 6% commission on a $480,000 sale. The broker's associate gets 40% of the office's 60% split. How much does the associate receive?
- A property's NOI is $48,000 per year. If the cap rate is 8%, what is the estimated value?
- A New Mexico seller accepts an offer of $445,000. Closing costs are $3,200, commission is 5.5%, and the existing mortgage payoff is $285,000. What are the net proceeds to the seller?
- A New Mexico broker has a 60/40 split with a salesperson (agent gets 60%). A deal closes at $285,000 with a 5.5% commission, split 50/50 between listing and selling brokerages. What does the selling agent earn?
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 →