Real Estate Math
A Delaware property has an annual NOI of $42,500. Using a cap rate of 6.5%, what is the estimated market value?
A$653,846✓ Correct
B$600,000
C$625,000
D$700,000
Explanation
Value = NOI ÷ Cap Rate = $42,500 ÷ 0.065 = $653,846. To solve this, multiply the relevant values: $42,500 at 6.5%.. The correct answer is $653,846.. This is a common calculation on the Delaware real estate exam.
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