Real Estate Math
A Delaware investor wants a 9% return on an investment property. The expected annual NOI is $54,000. What is the maximum price the investor should pay?
A$600,000✓ Correct
B$540,000
C$486,000
D$650,000
Explanation
Maximum Price = NOI ÷ Required Cap Rate = $54,000 ÷ 0.09 = $600,000.
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