Property Valuation
A Minnesota investor wants to determine the market cap rate for apartment buildings in a specific neighborhood. They would analyze:
AThe assessed values divided by the county's tax rate
BRecent sale prices divided by the NOI of each sold property✓ Correct
CThe gross rent multipliers of all apartments in the city
DThe Federal Reserve's benchmark interest rate
Explanation
Market cap rates are extracted by analyzing recent sales of comparable properties. For each sale, the appraiser or analyst calculates the cap rate as NOI/Sale Price.
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