Real Estate Math
An investor purchased a NYC building for $2,000,000. After 5 years the NOI was $140,000. Using the income approach, if the market cap rate is 6.5%, the current value is approximately:
A$2,000,000
B$2,153,846✓ Correct
C$1,750,000
D$2,300,000
Explanation
Value = NOI ÷ Cap Rate = $140,000 ÷ 0.065 = $2,153,846.
Related New York Real Estate Math Questions
- A Bronx apartment complex with 20 units sells for $3,600,000. The price per unit is:
- A seller in New York wants to net $400,000 after paying a 5% broker commission and $8,000 in closing costs. What must the property sell for?
- A broker earns 3% commission on a $1,200,000 commercial sale. The broker retains 70% and pays 30% to the cooperating agent. How much does the cooperating agent receive?
- If a property's NOI is $55,000 and the cap rate is 7%, the indicated value is:
- A $520,000 property is mortgaged at 75% LTV. What is the down payment?
- A buyer obtains a $400,000 mortgage at 6% annual interest. What is the first month's interest payment?
- A New York property is sold for $925,000. The buyer pays a 10% down payment and obtains a mortgage for the balance. The NY State transfer tax ($2/$500) is paid by the seller. What is the seller's transfer tax liability?
- A property is listed for $550,000 and the seller must net at least $510,000 after a 5% commission. Will the asking price achieve the seller's net requirement?
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →