Real Estate Math
A Utah investor needs a minimum 8% cap rate. If a property has an NOI of $56,000, what is the maximum price the investor should pay?
A$700,000✓ Correct
B$448,000
C$625,000
D$780,000
Explanation
Maximum price = NOI ÷ Cap Rate = $56,000 ÷ 0.08 = $700,000.
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