Real Estate Math
A Colorado duplex has a monthly NOI of $3,200. If an investor requires a 6% cap rate, what is the maximum they should pay for this property?
AA. $640,000✓ Correct
BB. $51,200
CC. $680,000
DD. $53,333
Explanation
Annual NOI = $3,200 × 12 = $38,400. Value = NOI ÷ Cap Rate = $38,400 ÷ 0.
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