Real Estate Math
An investor pays $450,000 for a property and desires an 8% return. What minimum annual NOI does the investor need?
A$32,000
B$36,000✓ Correct
C$40,000
D$54,000
Explanation
Required NOI = Purchase Price × Cap Rate = $450,000 × 8% = $36,000. To solve this, multiply the relevant values: $450,000 at 8%..
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