Real Estate MathInvestment_calculationsEASY
A property produces annual NOI of $52,000 and is purchased for $700,000. What is the capitalization rate?
Correct Answer
B) 7.43%
Cap rate = $52,000 ÷ $700,000 = 0.0743, or 7.43%.
Answer Options
A
1346.15%B
7.43%C
0.74%D
107.43%Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Real Estate Math Question
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Background Knowledge for Real Estate Math
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Real World Application in Real Estate Math
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