Real Estate Math
A property has an NOI of $45,000 and sells for $750,000. What is the cap rate?
A6%✓ Correct
B5%
C7.5%
D8%
Explanation
Cap rate = NOI ÷ Sale Price = $45,000 ÷ $750,000 = 0.06 = 6%. Using the values given ($45,000, $750,000), apply the appropriate formula.. The correct answer is 6%.. This is a common calculation on the Utah real estate exam.
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