Real Estate Math
An Oregon commercial property is priced at $2,400,000. Annual NOI is $168,000. What is the cap rate?
A8%
B7%✓ Correct
C6%
D9%
Explanation
Cap Rate = NOI ÷ Purchase Price = $168,000 ÷ $2,400,000 = 0.07 = 7%.
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