Real Estate Math
A commercial property in Salt Lake City generates $18,000/month in gross rent. At a 5.5% cap rate, what is the approximate value? (Assume 30% expense ratio, no vacancy.)
A$151,200✓ Correct
B$3,927,273
C$2,400,000
D$3,272,727
Explanation
Annual gross = $18,000 × 12 = $216,000. NOI = $216,000 × (1 − 0.
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