Real Estate Math

A Connecticut investment property is purchased for $680,000. Annual NOI is $47,600. After 4 years, the property is sold for $750,000. What is the total 4-year return on investment (NOI + appreciation) as a percentage of purchase price?

A38.0%✓ Correct
B48.0%
C28.0%
D30.0%

Explanation

Total NOI over 4 years = $47,600 × 4 = $190,400. Appreciation = $750,000 - $680,000 = $70,000. Total return = $190,400 + $70,000 = $260,400. ROI = $260,400 ÷ $680,000 = 38.3% ≈ 38.0%.

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