Real Estate Math
A property has 3 rental units. Unit 1 rents for $850/month, Unit 2 for $900/month, Unit 3 for $775/month. The vacancy rate is 10%. What is the effective annual gross income?
A$27,450✓ Correct
B$24,705
C$30,500
D$25,605
Explanation
Monthly PGI = $850 + $900 + $775 = $2,525. Annual PGI = $2,525 x 12 = $30,300.
Related Ohio Real Estate Math Questions
- A property's net operating income is $48,000. Operating expenses are $22,000. What is the effective gross income?
- A property is under contract for $285,000. The appraisal comes in at $270,000. The lender will loan 80% of appraised value. How much additional cash must the buyer bring to the table beyond their planned 20% down on the contract price?
- A property owner wants to net $225,000 after paying a 6% commission. What must the property sell for?
- An investor purchases a rental property for $200,000 with $40,000 down. The property generates $18,000 annual net operating income and has $12,000 annual debt service. What is the cash-on-cash return?
- An investor requires a 12% return on investment. The property generates $24,000 annual cash flow after debt service. What is the maximum they should invest in equity?
- A borrower's monthly principal and interest payment is $1,250. Their gross monthly income is $5,000. What is their front-end (housing) debt-to-income ratio?
- A building has an economic life of 40 years and is 10 years old. Using straight-line depreciation, what percentage of value has been depreciated?
- A listing expires with a protection period clause. During the 90-day protection period, a buyer the agent introduced purchases the property. The commission is 5% on $310,000. How much commission is owed?
Practice More Ohio Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Ohio Quiz →