Real Estate Math
A property with an effective gross income of $145,000 and operating expenses of $52,200 is purchased at a 7.25% cap rate. What is the purchase price?
A$1,270,069✓ Correct
B$1,282,759
C$1,255,862
D$2,000,000
Explanation
NOI = $145,000 − $52,200 = $92,800. Price = $92,800 ÷ 0.
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