Real Estate Math
A Virginia duplex produces $1,500/month from each unit. Annual operating expenses are $12,000. Using a 9% cap rate, what is the property's value?
A$200,000
B$266,667✓ Correct
C$250,000
D$300,000
Explanation
Annual Gross Income = $1,500 × 2 units × 12 months = $36,000. NOI = $36,000 − $12,000 = $24,000.
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