Property Valuation
An income property appraiser in Missouri is given a projected first-year NOI of $60,000 for a property listing at $750,000. What is the implied cap rate?
A6%
B7%
C8%✓ Correct
D10%
Explanation
Cap rate = NOI ÷ Value = $60,000 ÷ $750,000 = 8%. Using the values given ($60,000, $750,000), apply the appropriate formula..
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