Real Estate Math
A Washington rental property has a cap rate of 6% and a value of $800,000. What is the annual NOI?
A$40,000
B$48,000✓ Correct
C$56,000
D$64,000
Explanation
NOI = Value × Cap Rate = $800,000 × 6% = $48,000. This is the income capitalization formula rearranged: NOI = Value × Cap Rate.
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