Real Estate Math
A Vermont 6-unit apartment building sells for $780,000. Annual NOI is $54,600. What is the cap rate?
A6%
B7%✓ Correct
C8%
D9%
Explanation
Cap Rate = NOI / Value = $54,600 / $780,000 = 0.07 = 7%.
Related Vermont Real Estate Math Questions
- A Vermont property's gross annual income is $48,000. After a 10% vacancy allowance and $16,800 in operating expenses, what is the net operating income?
- A Vermont commercial property produces $90,000 in annual gross income with a 30% vacancy and expense ratio. At a 6% capitalization rate, what is its value?
- A Vermont buyer's agent earns 45% of a 6% total commission on a $320,000 sale. What is the buyer's agent's commission?
- A Vermont property's annual property taxes are $4,800. The tax is paid at closing and the seller has already paid the full year's taxes. If closing occurs on September 1 (assuming a 365-day year), how much does the BUYER owe the SELLER as a proration?
- A Vermont property is listed at $350,000 and receives an offer of $336,000. The seller counters at $345,000. By how much did the seller reduce the list price in the counter?
- A Vermont lender requires a debt coverage ratio (DCR) of at least 1.25 on a commercial loan. The annual NOI is $75,000. What is the maximum annual debt service that would be approved?
- A Vermont investor buys a property at $525,000 and sells it 2 years later for $598,500. What was the total appreciation percentage?
- A Burlington rental property has monthly gross rents of $3,500. Annual operating expenses are $18,000. What is the annual NOI?
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →