Real Estate Math
A 6-unit building in Olympia has a gross income of $96,000/year. Operating expenses are $38,400. The property sells at a 7.5% cap rate. What is the sale price?
A$760,000
B$768,000✓ Correct
C$960,000
D$1,280,000
Explanation
NOI = $96,000 – $38,400 = $57,600. Sale price = NOI ÷ cap rate = $57,600 ÷ 0.075 = $768,000. To solve this, multiply the relevant values: $96,000 and $38,400 at 7.5%.. The correct answer is $768,000.. This is a common calculation on the Washington real estate exam.
Related Washington Real Estate Math Questions
- A Washington investment property is purchased for $875,000 with NOI of $61,250. The cap rate is:
- A buyer finances $400,000 at 6.5% interest for 30 years. The monthly payment factor for a 6.5% 30-year loan is approximately $6.32 per $1,000. What is the approximate monthly P&I payment?
- A Washington broker lists a property. After 45 days, the seller lowers the price by 2.5% from $825,000. The new list price is:
- A Washington property has an effective gross income of $210,000 and an expense ratio of 40%. What is the NOI?
- A Washington home's NOI is $38,400. The seller wants a price that reflects an 8% cap rate. What should the asking price be?
- A Washington property manager collects rents for 12 months totaling $186,000. The management fee is 8%. Annual fees earned are:
- A Washington homeowner has an 80% LTV loan of $440,000. What is the home's value?
- A Washington investor purchases a property for $1,100,000 with 35% down and finances the rest at 6% interest-only. Annual interest payment is:
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →