Real Estate Math
A Colorado commercial property sold for $2,250,000 at a 6.8% cap rate. What was the annual NOI?
AA. $153,000✓ Correct
BB. $33,088,235
CC. $152,000
DD. $155,000
Explanation
NOI = Sale Price × Cap Rate = $2,250,000 × 6.8% = $2,250,000 × 0.068 = $153,000. To solve this, multiply the relevant values: $2,250,000 at 6.8%.. The correct answer is A. $153,000.. This is a common calculation on the Colorado real estate exam.
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