Real Estate Math

A Hawaii property's NOI increased from $85,000 to $102,000. If the cap rate remains at 6%, what is the increase in property value?

AA. $250,000
BB. $283,333✓ Correct
CC. $300,000
DD. $170,000

Explanation

Original value = $85,000 / 0.06 = $1,416,667.

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