Real Estate Math

A Maine property has an NOI of $55,000 and the cap rate in the market is 7%. If the NOI increases to $60,000 and the cap rate remains 7%, how much does the value increase?

A$45,000
B$57,143
C$71,428✓ Correct
D$100,000

Explanation

Original value = $55,000 ÷ 0.07 = $785,714.

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