Real Estate Math
A property's annual NOI is $48,000. Market cap rates for similar properties are 8%. Using the income approach, what is the estimated value?
A$384,000
B$600,000✓ Correct
C$520,000
D$480,000
Explanation
Value = NOI ÷ Cap Rate = $48,000 ÷ 0.08 = $600,000.
Related Oregon Real Estate Math Questions
- An Oregon property was sold at a 15% loss. If the selling price was $382,500, what was the original purchase price?
- A property has an assessed value of $320,000. Oregon's property tax rate is $15 per $1,000 of assessed value. The semi-annual tax installment is:
- A commercial property has a gross annual income of $120,000, vacancy loss of 5%, and operating expenses of $40,000. What is the net operating income (NOI)?
- A broker earns a 5% commission on a sale. If the gross commission is $19,500, what was the sale price?
- A property has 4 rental units, each generating $1,200 per month. The annual operating expenses are $12,000 and vacancy is 5%. What is the annual NOI?
- A property's market value is $475,000. If it sells at a 4% discount from market value, what is the sale price and the dollar discount?
- An Oregon investor paid $320,000 for a rental property. The property generates $2,400/month in rent. What is the gross rent multiplier (GRM)?
- An investor purchases an apartment building for $1,200,000. The annual NOI is $96,000. What is the cap rate?
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →