Real Estate Math
An investor pays $550,000 for a building and wants a 9% annual return. What annual NOI is required?
A$49,500✓ Correct
B$55,000
C$61,111
D$45,000
Explanation
Required NOI = Property value × Cap rate = $550,000 × 9% = $49,500. To solve this, multiply the relevant values: $550,000 at 9%..
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