Real Estate Math

A Wisconsin investor wants a 10% return on a $500,000 property. What annual NOI is needed?

A$40,000
B$45,000
C$50,000✓ Correct
D$55,000

Explanation

Required NOI = Value × Cap Rate = $500,000 × 10% = $50,000. To solve this, multiply the relevant values: $500,000 at 10%..

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