Real Estate Math
A NC investment property has an asking price of $650,000 and an NOI of $45,500. The implied cap rate is:
A6.5%
B7.0%✓ Correct
C7.5%
D8.0%
Explanation
Cap rate = NOI / Value = $45,500 / $650,000 = 0.07 = 7.0%. Using the values given ($650,000, $45,500), apply the appropriate formula.. The correct answer is 7.0%.. This is a common calculation on the North Carolina real estate exam.
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