Property Valuation
If an Ohio property's NOI is $50,000 and it sells at a 6.25% cap rate, what is the sale price?
A$700,000
B$750,000
C$800,000✓ Correct
D$850,000
Explanation
Sale price = NOI / Cap Rate = $50,000 / 0.0625 = $800,000. To solve this, multiply the relevant values: $50,000 at 6.25%.. The correct answer is $800,000.. This is a common calculation on the Ohio real estate exam.
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