Real Estate Math

A Maryland property has a monthly NOI of $3,500. Annualized, its value at a 7% cap rate is:

A$420,000
B$500,000
C$600,000✓ Correct
D$700,000

Explanation

Annual NOI = $3,500 × 12 = $42,000. Value = $42,000 ÷ 0.

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