Real Estate Math
A North Dakota investor earns $36,000 net annual income on a $450,000 property. What is the overall capitalization rate?
A7%
B8%✓ Correct
C9%
D10%
Explanation
Cap rate = NOI / Value = $36,000 / $450,000 = 0.08 = 8%. Using the values given ($36,000, $450,000), apply the appropriate formula.. The correct answer is 8%.. This is a common calculation on the North Dakota real estate exam.
Related North Dakota Real Estate Math Questions
- A North Dakota listing agreement offers 2.5% to the buyer's agent and 2.5% to the listing broker. The property sells for $348,000. What does each side receive?
- A buyer finances $160,000 at 7% annual interest (interest only). What is the monthly interest payment?
- A North Dakota property has a tax mill rate of 85 mills and an assessed value of $250,000. What is the annual property tax?
- A North Dakota lot is 150 feet wide and 200 feet deep. What is its area in square feet?
- An investor purchases a 6-unit apartment building for $480,000. Monthly rent per unit is $700. What is the annual gross rent multiplier (GRM)?
- A North Dakota property has an assessed value of $180,000 and is assessed at 50% of market value. What is the estimated market value?
- A North Dakota property is being depreciated for income tax purposes using straight-line depreciation over 27.5 years. If the depreciable basis is $220,000, what is the annual depreciation deduction?
- A North Dakota property is described as the NE¼ of the SW¼ of Section 6. How many acres does this description contain?
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →