Success in real estate isn’t just about charm, hustle or curb appeal — it’s also about the numbers. Behind every smart investment, accurate valuation and strategic decision is a solid grasp of math. Whether you’re prepping for your real estate exam, calculating mortgage payments, wholesaling, or flipping a property, understanding real estate math formulas gives you a critical edge.Why it’s still essential to understand real estate math formulas1. Loan-to-value ratio2. The 28 / 36 rule (qualification ratio)3. Down payments4. Capitalization rate5. Return on investment (ROI)6. Prorated taxes7. Calculations related to mortgage payments9. Price-to-rent ratio10. Gross rent multiplier11. Commission formula12. 70% rule
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