Real Estate Math
A New York property generates monthly rent of $4,500. Annual operating expenses are $25,000. If the property is valued at a 7% cap rate, what is the estimated value?
A$642,857✓ Correct
B$357,143
C$772,857
D$500,000
Explanation
Annual gross rent = $4,500 × 12 = $54,000. NOI = $54,000 - $25,000 = $29,000.
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