Property Valuation
The term 'capitalization rate' (cap rate) in New York real estate income property valuation is calculated as:
ANet Operating Income divided by Value✓ Correct
BGross Rental Income divided by Value
CValue divided by Net Operating Income
DGross Rental Income minus Operating Expenses
Explanation
The capitalization rate (cap rate) = Net Operating Income (NOI) divided by Value (or purchase price). It represents the rate of return on an investment property based on its income.
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