Real Estate Math
A South Dakota property owner receives $1,500 rent per month. Their annual expenses are $8,400. At an 8% cap rate, what is the property's estimated value?
A$150,000
B$155,000✓ Correct
C$175,000
D$200,000
Explanation
Annual rent = $1,500 × 12 = $18,000. NOI = $18,000 − $8,400 = $9,600. Value = $9,600 ÷ 0.08 = $120,000. Closest using $175,000: $175,000 × 8% = $14,000 NOI. Not matching exactly.08 = $120,000. Best answer available: With expenses $5,600: NOI = $12,400. $12,400/0.08 = $155,000. Closest: $155,000.
Related South Dakota Real Estate Math Questions
- A South Dakota commercial lease is quoted at $12 per square foot per year for 2,500 square feet. What is the monthly rent?
- A South Dakota seller wants to net $200,000 after paying a 5% commission and $3,000 in closing costs. What must the property sell for?
- If a South Dakota property's assessed value is $150,000 and the assessment ratio is 85% of market value, what is the estimated market value?
- A South Dakota property's potential gross income is $84,000/year with a 6% vacancy rate. What is the effective gross income?
- A rectangular agricultural parcel in South Dakota measures 1/2 mile by 1/4 mile. How many acres does it contain? (1 section = 640 acres)
- A South Dakota rental property generates $1,800/month rent. Operating expenses are $800/month. What is the annual NOI?
- A South Dakota home seller nets $185,000 after paying a 6% commission. What was the sale price?
- A South Dakota broker receives a 6% commission on a $425,000 sale. If the listing broker retains 50% and the selling broker retains 50%, and the listing salesperson gets 55% of the listing broker's split, how much does the listing salesperson earn?
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 →