Real Estate Math
A Texas investor paid $775,000 for a property. It appreciates 4% per year. What is the value after 2 years (simple appreciation)?
A$837,000✓ Correct
B$872,000
C$851,000
D$839,500
Explanation
Annual appreciation = $775,000 × 0.04 = $31,000. 2-year appreciation = $31,000 × 2 = $62,000. Value = $775,000 + $62,000 = $837,000.
Related Texas Real Estate Math Questions
- A Texas commercial property generates an annual NOI of $60,000. Comparable properties are selling at a 7.5% cap rate. What is the indicated value?
- A seller wants to net $230,000 after paying a 5.5% commission and $3,500 in seller closing costs. What must the property sell for?
- A Texas property sold for $285,000. The seller paid a 6% commission and $4,200 in closing costs. The seller's original purchase price was $220,000. What is the seller's net profit?
- A Texas broker earned a total commission of $24,500. The broker's office split is 60% to the agent and 40% to the broker. How much does the broker keep?
- A Texas buyer obtains a $280,000 mortgage at 7% annual interest for 30 years. Using a factor of $6.65 per $1,000 borrowed, what is the approximate monthly P&I payment?
- A 5,000 SF Texas office is leased at $18/SF/year NNN. Annual property taxes are $12,000, insurance is $4,000, and maintenance is $8,000. What does the tenant pay annually?
- A rectangular commercial lot is 200 feet wide and 400 feet deep. It sells for $12 per square foot. What is the total sale price?
- A Texas investor collects $3,600/month rent on a property purchased for $480,000. What is the annual gross rent yield?
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →