Real Estate Math
A North Dakota rental property generates annual gross income of $36,000, with a vacancy rate of 5% and operating expenses of $12,000. What is the net operating income (NOI)?
A$22,200✓ Correct
B$23,400
C$24,000
D$24,600
Explanation
Effective Gross Income = $36,000 × (1 − 5%) = $36,000 × 0.95 = $34,200.
Related North Dakota Real Estate Math Questions
- A North Dakota homeowner has owned their home for 2 years and sells it for $340,000. They paid $290,000. If they are married (filing jointly), their capital gain of $50,000 is:
- A North Dakota commercial property is being sold. The seller has a basis of $320,000 (after depreciation) and sells for $500,000. What is the capital gain subject to tax?
- A North Dakota property's purchase price is $420,000. The buyer obtains a loan for 80% of the price and the seller contributes $6,000 to closing costs. What is the buyer's down payment out-of-pocket before closing costs?
- A North Dakota broker's annual trust account audit shows $185,000 in client funds held. The broker's own funds in the account are $300 (allowed minimum). What is the total trust account balance?
- A North Dakota property manager charges 6% of monthly rent for management. In November, two units are vacant and the other 8 units each pay $700/month. What is the management fee for November?
- 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 North Dakota homeowner refinances their $260,000 mortgage at a lower rate. The lender charges 2 points. How much are the points in dollars?
- A North Dakota landlord increases rent from $800/month to $850/month. What is the percentage increase?
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 →