Real Estate Math
A Pittsburgh investment property generates $48,000 annual gross rent. Operating expenses total $18,000. The investor paid $300,000. What is the cap rate?
A6%
B10%✓ Correct
C16%
D6.7%
Explanation
NOI = $48,000 − $18,000 = $30,000. Cap Rate = NOI ÷ Value = $30,000 ÷ $300,000 = 10%.
Related Pennsylvania Real Estate Math Questions
- A rectangular lot is 150 feet wide and 200 feet deep. What is the lot size in acres? (1 acre = 43,560 sq ft)
- A Pennsylvania tenant pays $2,400/month rent. The lease specifies a 3% annual increase. What is the rent in month 13 (year 2)?
- A Pennsylvania broker charges 6% commission on a sale. After paying a 50/50 split to the cooperating buyer's broker, each side earns how much on a $380,000 sale?
- A Pennsylvania buyer pays 1.5 points to buy down their 7% rate. On a $240,000 loan, what is the cost of the points?
- A 20-year-old building cost $300,000 to construct and has a 50-year estimated economic life. Using straight-line depreciation, what is the total depreciation accrued?
- An investor purchases a 4-unit property in Scranton for $280,000. Each unit rents for $850/month. What is the gross rent multiplier (GRM) using monthly rent?
- A Pennsylvania home appreciates 4% per year. If purchased for $275,000, what is the value after 2 years?
- A home in York, PA listed at $235,000 receives an offer for 97% of list price. What is the offer amount?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →