Real Estate Math
A rental property in Las Cruces has a gross annual income of $36,000 and annual expenses of $12,000. Using a 7% cap rate, what is the estimated value?
A$342,857✓ Correct
B$514,286
C$300,000
D$257,143
Explanation
NOI = $36,000 - $12,000 = $24,000. Value = NOI / Cap Rate = $24,000 / 0.
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