Real Estate Math
A South Carolina rental property has potential gross income of $36,000 per year. Vacancy rate is 5%, operating expenses are $12,000, and the cap rate is 8%. What is the estimated property value?
A$285,000
B$300,000
C$262,500
D$280,000✓ Correct
Explanation
EGI = $36,000 × (1 - 5%) = $36,000 × 0.95 = $34,200. NOI = $34,200 - $12,000 = $22,200. Value = $22,200 / 0.08 = $277,500.08 = $277,500. The value is $277,500 but closest provided option: $262,500 if using PGI - expenses directly.
Related South Carolina Real Estate Math Questions
- An investor purchases a duplex for $280,000. Each unit rents for $1,100/month. Annual operating expenses are $8,400. What is the annual net operating income (NOI) and cap rate?
- A Greenville property has an assessed value of $120,000 (at 4% assessment ratio for primary residence) and a millage rate of 250 mills. What is the annual property tax?
- A South Carolina buyer puts 5% down on a $280,000 home. What is the loan amount?
- A South Carolina home is appraised at $315,000. The buyer makes a 20% down payment. What is the LTV on the resulting mortgage?
- A South Carolina home sold for $198,000. The listing broker and buyer's broker each received 2.5% commission. What did each side receive?
- A South Carolina investor needs a 9% return on a $550,000 investment. What annual NOI is required?
- A South Carolina property was purchased for $220,000 and depreciated at $8,000/year for tax purposes. After 4 years, what is the adjusted tax basis?
- A South Carolina property generates monthly rent of $1,800. The property sells at a GRM of 150. What is the sale price?
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →