Real Estate Math
A South Dakota property has an NOI of $30,000 and sold at a 6% cap rate. What was the sale price?
A$450,000
B$500,000✓ Correct
C$525,000
D$600,000
Explanation
Sale price = NOI ÷ Cap Rate = $30,000 ÷ 0.06 = $500,000.
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