Real Estate Math
A Florida investor earns $22,000 NOI on a property valued at $275,000. What is the capitalization rate?
A7.0%
B8.0%✓ Correct
C7.5%
D6.5%
Explanation
Cap Rate = NOI ÷ Value = $22,000 ÷ $275,000 = 0.08 = 8.
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