Real Estate Math
An income property has an effective gross income of $96,000 and operating expenses of $32,000. If the cap rate is 8%, what is the value?
A$400,000
B$800,000✓ Correct
C$1,200,000
D$1,600,000
Explanation
NOI = $96,000 − $32,000 = $64,000. Value = $64,000 ÷ 0.
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