Real Estate Math
A Tennessee investor uses a 9.5% cap rate to value a property with annual NOI of $64,600. What is the estimated value?
A$679,579✓ Correct
B$614,700
C$680,000
D$646,000
Explanation
Value = NOI ÷ Cap rate = $64,600 ÷ 0.095 = $679,579.
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