Real Estate Math
A North Dakota property's cap rate is 9% and NOI is $54,000. What is the estimated value?
A$540,000
B$600,000✓ Correct
C$625,000
D$666,667
Explanation
Value = NOI / Cap Rate = $54,000 / 0.09 = $600,000. To solve this, multiply the relevant values: $54,000 at 9%.. The correct answer is $600,000.. This is a common calculation on the North Dakota real estate exam.
Related North Dakota Real Estate Math Questions
- A North Dakota property has annual taxes of $4,200. Closing occurs on April 1. How much does the seller owe the buyer in prorated taxes (using a 365-day year, taxes not yet paid)?
- A North Dakota investor's annual before-tax cash flow is $18,000 on a $300,000 property purchased with $60,000 down. What is the cash-on-cash return?
- A property's NOI is $28,800 per year. The capitalization rate is 8%. What is the estimated value using the income approach?
- A property generates monthly rent of $1,800. If the GRM is 130, what is the estimated value?
- A North Dakota property is purchased for $350,000. The buyer puts 25% down. If the property appreciates 4% in one year, what is the buyer's return on the down payment (simple ROE)?
- A North Dakota home that originally sold for $175,000 is now worth $245,000. What is the percentage appreciation?
- A North Dakota property is sold in a 1031 exchange. The seller's relinquished property sold for $800,000 with an adjusted basis of $500,000. To defer all capital gains, the replacement property must be purchased for at least:
- A North Dakota home was purchased for $250,000. After 5 years of 3% annual appreciation, what is the approximate value?
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 →