Real Estate Math
A Maine property's annual NOI is $60,000 and the purchase price was $750,000. The overall capitalization rate (OAR) is:
A6.0%
B7.0%
C8.0%✓ Correct
D12.5%
Explanation
Cap rate = NOI ÷ Value = $60,000 ÷ $750,000 = 0.08 = 8.
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