Real Estate Math
A property with an NOI of $52,000 and a cap rate of 6.5% has an estimated value of approximately:
A$720,000
B$780,000
C$800,000✓ Correct
D$900,000
Explanation
Value = NOI / Cap Rate = $52,000 / 0.065 = $800,000. To solve this, multiply the relevant values: $52,000 at 6.5%.. The correct answer is $800,000.. This is a common calculation on the Oklahoma real estate exam.
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