Real Estate Math
A Michigan investment property generates $72,000 in annual NOI. If it sells at a 6% cap rate, what is the sale price?
A$1,000,000
B$1,200,000✓ Correct
C$1,080,000
D$720,000
Explanation
Sale Price = NOI / Cap Rate = $72,000 / 0.06 = $1,200,000.
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