Real Estate Math
A Tennessee investment property has annual NOI of $52,000 and the investor requires a 9% return. What is the maximum purchase price the investor should pay?
A$468,000
B$577,778✓ Correct
C$520,000
D$624,000
Explanation
Maximum price = NOI ÷ Required return = $52,000 ÷ 0.09 = $577,778.
Related Tennessee Real Estate Math Questions
- A broker lists a property for $450,000. After 30 days, the seller agrees to reduce the price by 3%. A buyer then offers 2% below the new price. What is the buyer's offer?
- A seller wants to net $250,000 after paying a 6% commission. What must the property sell for?
- A property's assessed value is $180,000 and the tax rate is $2.50 per $100 of assessed value. What are the annual property taxes?
- An investor wants a 10% cash-on-cash return. They invest $85,000 in down payment and closing costs. The property's annual NOI is $22,000 and the annual mortgage payment is $13,600. What is the cash-on-cash return?
- A buyer puts 15% down on a $320,000 home and pays 1.5 discount points. What is the total amount paid in points?
- What is the commission earned if a property sells for $425,000 at a 5.5% commission rate, and the listing brokerage and selling brokerage split it 50/50?
- A section of land in the rectangular survey system contains how many square miles?
- An apartment building has 10 units all renting at $950/month. The vacancy rate is 8%. Annual operating expenses are $45,000. What is the NOI?
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →