Given the following information, calculate the going-in capitalization rate for the specific property. First-year NOI: $87,750, Acquisition price: $1,250,000, Equity Investment: 35%; Before-tax cash flow: $53,500.

Question

Quizplus · Accepted Answer

The going-in capitalization rate is calculated by dividing the first-year Net Operating Income (NOI) by the acquisition price. So, $87,750 / $1,250,000 = 0.07 or 7%.

Given the Following Information, Calculate the Going-In Capitalization Rate for the Specific