Real Estate Math
A Delaware commercial property sold for $2,400,000 with an NOI of $156,000. What is the cap rate?
A6.5%✓ Correct
B7.0%
C5.5%
D8.0%
Explanation
Cap Rate = NOI ÷ Sale Price = $156,000 ÷ $2,400,000 = 0.065 = 6.5%. Using the values given ($2,400,000, $156,000), apply the appropriate formula.. The correct answer is 6.5%.. This is a common calculation on the Delaware real estate exam.
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