Real Estate Math
A Texas commercial property has an asking price of $1,200,000. NOI is $84,000/year. What is the cap rate being asked?
A6%
B7%✓ Correct
C8%
D9%
Explanation
Cap Rate = NOI ÷ Price = $84,000 ÷ $1,200,000 = 0.07 = 7%.
Related Texas Real Estate Math Questions
- A Texas sales agent sold a home for $520,000. The total commission was 6%, split 50/50 between listing and buyer's broker. If the listing agent receives 55% of their broker's portion, how much does the listing agent earn?
- A Texas commercial property sold for $1,800,000. The net operating income (NOI) is $126,000. What capitalization rate was implied by the sale?
- A Texas investor paid $775,000 for a property. It appreciates 4% per year. What is the value after 2 years (simple appreciation)?
- A Texas broker charges 7% on the first $100,000 and 4% on the balance of the sale price. If a property sells for $350,000, what is the total commission?
- A property sold for $325,000. The listing agent's brokerage receives 3% and the buyer's agent's brokerage receives 3% of the sales price. Each broker keeps 50% and pays 50% to their agent. How much does the listing agent receive?
- A Texas property is under contract at $275,000. The buyer's lender requires the property to appraise at or above the purchase price for a 90% LTV loan. What is the minimum appraised value needed?
- A Texas commercial property has a gross rent of $240,000 and a GRM of 8.5. What is the estimated value?
- A commercial property generates $120,000 annual NOI and was purchased for $1,500,000. What is the cap rate?
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →