Real Estate Math
A Virginia commercial property has a net operating income of $95,000. If it sells for $1,187,500, what is the overall capitalization rate?
A6%
B7%
C8%✓ Correct
D9%
Explanation
Cap Rate = NOI ÷ Value = $95,000 ÷ $1,187,500 = 0.08 = 8%.
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