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A broker presents you with the opportunity to buy an office building that will generate $100,000 in NOI in the first year after you buy

A broker presents you with the opportunity to buy an office building that will generate $100,000 in NOI in the first year after you buy it. He says that the building can be bought for $2 million.

What is the purchase (going-in) cap rate?

Is this a good investment?

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