Real Estate Math
A commercial property has annual NOI of $95,000. Market cap rates for similar properties are 7.5%. What is the indicated property value?
A$712,500
B$1,266,667✓ Correct
C$950,000
D$633,333
Explanation
Value = NOI / Cap rate = $95,000 / 0.075 = $1,266,667. To solve this, multiply the relevant values: $95,000 at 7.5%.. The correct answer is $1,266,667.. This is a common calculation on the Ohio real estate exam.
Related Ohio Real Estate Math Questions
- An Ohio property sells for $460,000. After paying off a $290,000 mortgage, a 5.5% commission, and $4,500 in closing costs, what does the seller net?
- An Ohio homeowner's property tax bill is $4,500 semiannually. If the assessed value is $100,000, what is the mill rate?
- An Ohio property's annual tax is $7,200. The property's assessed value is $120,000. What is the effective mill rate?
- A 1,200 sq ft office suite in Columbus rents for $24/sf annually, NNN. The tenant's pro-rata share of common areas adds $3/sf. What is the total annual rent?
- A property has monthly rents of $3,800. At a 7.5% annual cap rate, what is the estimated property value?
- A property has 150 front feet and 200 feet deep. At $8 per square foot, what is the land value?
- A salesperson earns 2.8% of the sale price. The property sold for $375,000. How much commission does the salesperson earn?
- A parcel of land is described as the NW 1/4 of the SW 1/4 of Section 12. How many acres does this contain? (A section = 640 acres)
Practice More Ohio Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Ohio Quiz →