Real Estate Math
If a Westchester property has an NOI of $90,000 and sold for $1,125,000, what is the capitalization rate?
A6%
B7%
C8%✓ Correct
D9%
Explanation
Cap Rate = NOI ÷ Sale Price = $90,000 ÷ $1,125,000 = 0.08 = 8%. Using the values given ($90,000, $1,125,000,), apply the appropriate formula.. The correct answer is 8%.. This is a common calculation on the New York real estate exam.
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