Real Estate Math
A NH investor wants a 9% cap rate on a property with annual NOI of $27,000. What is the maximum price to pay?
A$243,000
B$300,000✓ Correct
C$270,000
D$206,550
Explanation
Max Price = NOI / Cap Rate = $27,000 / 0.09 = $300,000. To solve this, multiply the relevant values: $27,000 at 9%.. The correct answer is $300,000.. This is a common calculation on the New Hampshire real estate exam.
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