Property Valuation
A property in Wisconsin recently sold for $350,000, and its NOI is $28,000. What is the overall capitalization rate?
A6%
B7%
C8%✓ Correct
D9%
Explanation
Cap Rate = NOI / Sale Price = $28,000 / $350,000 = 0.08 = 8%. Using the values given ($350,000,, $28,000), apply the appropriate formula.. The correct answer is 8%.. This is a common calculation on the Wisconsin real estate exam.
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