Real Estate Math
A Hawaii apartment building has an NOI of $240,000 and sells at a 5% cap rate. What would the property sell for at a 6% cap rate?
AA. $4,800,000
B$800,000.00000000000✓ Correct
CC. $3,600,000
DD. $4,000,000
Explanation
At 5% cap rate: Value = $240,000 / 0.05 = $4,800,000.
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