In January 2026, investor Andre Bell studies a small apartment sale that closed at $750,000. The property's stabilized NOI is $60,000 per year. What overall cap rate is indicated by the sale?
Correct Answer
C) 8%
Step 1: Cap Rate = NOI ÷ Sale Price. Step 2: $60,000 ÷ $750,000 = 0.08. Step 3: Convert the decimal to a percentage, giving an indicated cap rate of 8%.
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