Real Estate Math
A Virginia property has an annual NOI of $42,000 and the local cap rate is 7%. What is the property's estimated value using the income approach?
A$294,000
B$600,000✓ Correct
C$420,000
D$560,000
Explanation
Value = NOI ÷ Cap Rate = $42,000 ÷ 0.07 = $600,000.
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