Georgia Real Estate Salesperson Exam — All Questions

An investment property generates $24,000 in net operating income and is valued at $300,000. What is the capitalization rate?

• a.6%
• b.8%✓
• c.12%
• d.4%

Cap rate equals net operating income divided by value: $24,000 / $300,000 = 0.08, or 8%. The cap rate expresses the property's return independent of financing.

A buyer obtains an 80% loan-to-value mortgage on a home priced at $350,000. What is the loan amount?

• a.$70,000
• b.$300,000
• c.$280,000✓
• d.$350,000

An 80% loan-to-value ratio means the loan equals 80% of $350,000, which is $280,000. The remaining $70,000 is the buyer's down payment.