Real Estate Math
An Iowa apartment building produces monthly gross rents of $8,400. Operating expenses run 35% of gross income. The cap rate for this type of property is 7%. What is the estimated value?
A$936,000✓ Correct
B$1,440,000
C$780,000
D$1,200,000
Explanation
Annual gross income = $8,400 x 12 = $100,800. NOI = $100,800 x (1 - 0.
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