Real Estate Math
A Wyoming investor needs a 12% return on investment. The projected annual NOI for a property is $54,000. What is the maximum price the investor should pay?
A$450,000✓ Correct
B$648,000
C$540,000
D$6,480,000
Explanation
Maximum Value = NOI ÷ Required Return = $54,000 ÷ 0.12 = $450,000. To solve this, multiply the relevant values: $54,000 at 12%.. The correct answer is $450,000.. This is a common calculation on the Wyoming real estate exam.
Related Wyoming Real Estate Math Questions
- How many sections are in a Wyoming township?
- A Wyoming investment property generates monthly rents of $3,500. The annual operating expenses total $14,400 and the vacancy rate is 5%. What is the annual NOI?
- A Wyoming property owner wants to net $315,000 after paying a 5% commission and $5,000 in other closing costs. What is the minimum sale price?
- A Wyoming property has an annual NOI of $52,000. If the property sells for $650,000, what is the capitalization rate?
- A Wyoming broker's annual gross commission income is $240,000. The broker pays 40% in overhead. What is the broker's net income?
- A Wyoming property closes on March 15. Annual property taxes are $4,800. Using a 360-day year, how much does the seller owe in property tax proration at closing?
- What is the assessed value of a Wyoming commercial property with a market value of $2,000,000 assessed at 11.5% of market value?
- A Wyoming seller nets $198,000 after paying a 6% commission. What was the selling price?
Practice More Wyoming Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wyoming Quiz →