Real Estate Math
A NJ investment property generates $52,000 net operating income per year. If the market cap rate is 6.5%, what is the estimated property value?
A$338,000
B$800,000✓ Correct
C$3,380,000
D$780,000
Explanation
Value = NOI ÷ Cap Rate = $52,000 ÷ 0.065 = $800,000.
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