Real Estate Math
A Washington investor earns $45,000 NOI on a $600,000 investment. What is the cash-on-cash return if they put $150,000 down and the annual debt service is $28,000?
A11.3%
B12.0%
C13.3%✓ Correct
D14.0%
Explanation
Cash flow = NOI − Debt Service = $45,000 − $28,000 = $17,000. Cash-on-cash return = $17,000 ÷ $150,000 (equity) = 11.33% ≈ 11.3%..33% ≈ 11.3%. But answer C says 13.3%.1133 = 11.33%. Correct answer is 11.3%.
Related Washington Real Estate Math Questions
- A Washington commercial building has an annual gross income of $240,000, vacancy and credit loss of 8%, and operating expenses of $85,000. What is the NOI?
- A Washington investment property is purchased for $875,000 with NOI of $61,250. The cap rate is:
- A Washington homeowner wants to net $500,000 after paying a 5.5% commission. What must the home sell for?
- A Washington homeowner has a $520,000 home with a $310,000 mortgage. Their equity is:
- A Washington home's list price is $749,900 and it sells for $735,000. What is the sale-to-list price ratio?
- A Washington listing agreement requires the seller to pay 5.5% commission. The home sells for $610,000. What is the commission amount?
- A Washington investor borrows $600,000 at 6% annually on an interest-only loan for 3 years. What are total interest payments over 3 years?
- A Washington renter pays $1,750/month. Annual rent increases 3%. What will the monthly rent be after 2 years?
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →