Real Estate Math

An Indiana investor's property generates a monthly NOI of $4,200. At a 7% cap rate, what is the property value?

A$600,000
B$660,000
C$720,000✓ Correct
D$780,000

Explanation

Annual NOI = $4,200 × 12 = $50,400. Value = $50,400 ÷ 0.

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