Real Estate Math
A property generates $6,500 per month NOI. At a 6% cap rate, what is the market value?
A$1,200,000
B$1,250,000
C$1,300,000✓ Correct
D$1,400,000
Explanation
Annual NOI = $6,500 × 12 = $78,000. Value = $78,000 / 0.06 = $1,300,000. To solve this, multiply the relevant values: $6,500 at 6%.. The correct answer is $1,300,000.. This is a common calculation on the Ohio real estate exam.
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