Real Estate Math

A Wisconsin commercial property generates $120,000 NOI and sold for $1,500,000. What is the cap rate?

A6%
B7%
C8%✓ Correct
D9%

Explanation

Cap Rate = NOI / Value = $120,000 / $1,500,000 = 0.08 = 8%. Using the values given ($120,000, $1,500,000), apply the appropriate formula.. The correct answer is 8%.. This is a common calculation on the Wisconsin real estate exam.

Related Wisconsin Real Estate Math Questions

Practice More Wisconsin Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Wisconsin Quiz →