Real Estate Math
A North Dakota property has 6 apartment units that each rent for $650/month. The annual gross income is what percentage of the $975,000 purchase price?
A4%✓ Correct
B4.8%
C5.3%
D6%
Explanation
Annual gross income = 6 units × $650/month × 12 months = $46,800. Percentage = $46,800 / $975,000 = 0.048 = 4.8%.. Actually 4.8% is index 1.8%.
Related North Dakota Real Estate Math Questions
- A North Dakota farm is 1,280 acres. How many sections does this represent?
- If a property's value increases from $175,000 to $196,000, what is the percentage increase?
- An investor wants a 10% return on a property generating $36,000 annual NOI. What is the maximum they should pay?
- A North Dakota buyer's closing disclosure shows total loan costs of $6,800, total other costs of $4,200, and a lender credit of $1,500. What are the net closing costs?
- A buyer finances $160,000 at 7% annual interest (interest only). What is the monthly interest payment?
- A property sells for $325,000. Transfer taxes are $1.50 per $500 of value. What are the transfer taxes?
- A North Dakota property has a cost new of $350,000 and accumulated depreciation of $70,000. What is the depreciated value of the improvements?
- A property generates monthly rental income of $3,200. Annual operating expenses are $12,500. What is the annual NOI?
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 →