Real Estate Math
A Florida investor wants to purchase a property that generates $48,000 NOI and requires a 9% return. What is the maximum purchase price?
A$433,333
B$480,000
C$533,333✓ Correct
D$432,000
Explanation
Maximum price = NOI ÷ Required Return = $48,000 ÷ 0.09 = $533,333. To solve this, multiply the relevant values: $48,000 at 9%.. The correct answer is $533,333.. This is a common calculation on the Florida real estate exam.
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