Real Estate Math
A 20-unit apartment complex generates monthly revenue of $24,000. Annual operating expenses are $216,000. At a 7% cap rate, what is the property's value?
A$600,000
B$720,000
C$800,000
D$1,028,571✓ Correct
Explanation
Annual gross income = $24,000 × 12 = $288,000. NOI = $288,000 − $216,000 = $72,000.
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