Real Estate Math
A property's NOI is $58,500 per year. The property sells at a price that yields a 6.5% cap rate. What is the sale price?
AA. $800,000
BB. $900,000✓ Correct
CC. $975,000
DD. $850,000
Explanation
Sale price = NOI ÷ Cap rate = $58,500 ÷ 0.065 = $900,000.
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