Real Estate Math
A Nashville commercial building has an NOI of $90,000 and is purchased at a 7.5% cap rate. What is the purchase price?
A$1,200,000✓ Correct
B$1,100,000
C$1,350,000
D$675,000
Explanation
Purchase price = NOI ÷ Cap rate = $90,000 ÷ 0.075 = $1,200,000.
Related Tennessee Real Estate Math Questions
- A Tennessee property manager collects $18,500 in monthly rent over 12 months. The management fee is 9%. How much does the owner NET from rent after the management fee?
- A Tennessee lender requires a maximum 28% housing ratio. A borrower's gross monthly income is $6,500. What is the maximum monthly PITI payment?
- A property sold for $295,000 and the recordation tax rate is $0.37 per $100 of consideration. How much is the recordation tax?
- An investor's property has gross potential income of $96,000 per year. Vacancy is 5%, and expenses are $28,000. If the investor purchases it at a 7% cap rate, what is the purchase price?
- An investor purchases a rental property for $180,000 and spends $20,000 on improvements. After 5 years, it sells for $250,000. What is the profit (not accounting for depreciation or taxes)?
- A property rents for $1,200/month. The GRM for the area is 100. What is the estimated value?
- A property manager charges 8% of monthly rent for management. If rent is $1,450/month and the property is occupied all 12 months, how much does the manager earn annually?
- A buyer puts 15% down on a $320,000 home and pays 1.5 discount points. What is the total amount paid in points?
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →