Real Estate Math
A Washington investor purchases a $1,050,000 property with 30% down. Annual NOI is $67,200. The cap rate is:
A5.9%
B6.0%
C6.4%✓ Correct
D7.0%
Explanation
Cap rate = NOI ÷ Purchase Price = $67,200 ÷ $1,050,000 = 0.064 = 6.
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