Real Estate Math
A South Dakota investor wants an 8.5% return on a $650,000 investment in a commercial property. What minimum annual NOI is required?
A$52,250
B$55,250✓ Correct
C$57,250
D$54,750
Explanation
Required NOI = Investment Amount × Required Cap Rate = $650,000 × 8.5% = $650,000 × 0.085 = $55,250.
Related South Dakota Real Estate Math Questions
- A South Dakota property was appraised at $320,000. The property is assessed at 85% of appraised value. What is the assessed value?
- A South Dakota property's value is $320,000. If the lender requires a maximum 80% LTV, what is the maximum loan amount?
- A South Dakota investor buys a rental duplex for $180,000. The annual gross rental income is $24,000. What is the gross rent multiplier (GRM)?
- A South Dakota commercial property has a GRM of 8.5 and annual gross income of $96,000. What is the estimated value?
- A South Dakota property taxes of $3,600/year have been paid in full. Closing is June 1. What is the buyer's portion of the taxes (assuming taxes paid in advance)?
- A South Dakota home seller nets $185,000 after paying a 6% commission. What was the sale price?
- A South Dakota property earns a monthly rent of $900. The GRM for the area is 110. What is the estimated market value?
- A lender offers a 30-year fixed mortgage at 7.5% with 2 discount points on a $240,000 loan. What is the dollar cost of the points?
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →