A rental property in Durham, NC rents for $1,800/month. Using a GRM of 150, what is the estimated property value?
Why $270,000 Is Correct
Answer B: $270,000
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related North Carolina Questions
- A property in Asheville generates monthly rent of $2,200. Using a GRM of 145, what is the estimated property value?Real Estate Math
- How many hours of pre-license education are required to sit for the North Carolina broker license exam?North Carolina License Law
- How many questions are on the North Carolina real estate broker licensing exam?North Carolina License Law
- What is the minimum passing score on the North Carolina real estate licensing exam?North Carolina License Law
- A North Carolina buyer's monthly payment is $1,800 and their gross monthly income is $5,400. What is their front-end (housing) ratio?Finance
- In North Carolina, which of the following is a characteristic of tenancy in common?Property Ownership
- What is the gross rent multiplier (GRM) for a property that sells for $180,000 and rents for $1,500 per month?Property Valuation
- A North Carolina property has an assessed value of $240,000. The tax rate is $1.10 per $100 of assessed value. What is the annual tax?Real Estate Math
Key Terms to Know
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →