Set 2: Income Approach

An office space measures 45 feet by 20 feet and rents for $1,200 per month. What is the annual rent per square foot?

$16

Bob owns a property that he rents out for $600 per month. Bob sold his property for $140,000. Joan owns a property that she rents out for $750 per month. Based on the sale of Bob's property, what is the indicated value of Joan's property?

$175,000

Bob owns a property that he rents out for $600 per month. Bob's property is worth $140,000. Joe owns a property that he rents out for $750 per month. What is the value of Joe's property?

$175,000

A store in a mall is renting a 2,000 square foot space for 5 years with a monthly rent of $2,500. The lease allows sales of $500,000 per year after which the tenant must pay 5% of sales as overage rent. What is the total rent per square foot per year of the base and overage rents if the store sold $750,000 that year?

$21.25

A two-story office building rents for $16 per square foot. The first floor measures 80 feet by 100 feet. The second story measures 80 feet by 80 feet. What is the annual rent?

$230,400

How much net operating income is necessary to support a property value of $200,000 at a 12% capitalization rate?

$24,000

An income property recently sold for $300,000, and the net operating income was $24,000. What was the capitalization rate for this property?

0.08

An appraiser uses which of the following calculations to find a gross rent multiplier?

GRM= sale price / gross monthly rent

negative leverage

George is analyzing the equity position of an investment property. His client has asked him to render an opinion regarding the effects of financing on the investment. A financial analysis has shown that, without a mortgage, the return to the equity would be 13%. With a mortgage proposed by a local lender, the return to the equity would be 12%. George will probably recommend against obtaining this loan because the client would experience

Gross

George is the owner of a 12-unit apartment building. His leases have definite expiration dates. George pays all expenses related to running this investment. The type of lease he is using is

In order to estimate effective gross income, an appraiser needs to know which of the following?

Potential gross income and vacancy and collection loss.

Capital

Accumulated goods and money which is most often used to generate additional income.

Occupancy Rate

The percentage of properties in a given are that are occupied.

Natural Vacancy rate

The percentage of vacant properties in a given are that is the result of natural turnover and market forces.

Operating Expenses

The periodic expenditures necessary to maintain the real property and continue production of the effective gross income, assuming prudent and competent management.

Income Approach

The process of estimating the value of property by considering the present value of a stream of income generated by the property.

The loss of income due to non-payment of scheduled rent is called?

collection loss

If the market exceeds contract rent the difference is called

deficit rent

The management fee in a reconstructed operating statement is usually computed as a:

percentage of effective gross income.

Operating expenses include

variable expenses

A property's net operating income is $80,000 and its capitalization rate is 8%. Total expenses are $58,500 and the monthly debt service is $4,100. What is the property value?

$1,000,000

An office building is valued at $100,000 and has a net income of $10,000. If the net income remains the same, but the capitalization rate increases by one full percentage point, what would the estimate of value be?

$90,909

A 5-unit apartment building is rented for $1,500/unit/month. The vacancy rate is 10%. The operating expenses total $35,500 per year. The NIR and OER are respectively

.44 and .56

A property is valued at $900,000 and its net operating income is $99,000. What is the indicated capitalization rate?

11%

An office building has a net operating income of $18,000 and an annual debt service of $10,000. It recently sold for $140,000. What is the overall capitalization rate? (Round to the nearest tenth)

12.9%

An investor requires a 10% rate of return to invest in a building. The building is expected to have a remaining economic life of 25 years. What is the appropriate building capitalization rate, using the straight-line method?

14%

Janet is appraising a 3-unit building. Her discussions reveal the following data: Unit 1 has experienced 3 months' vacancy over the last year. Unit 2 has had 1 month. And Unit 3 has had 2 months. Assuming the vacancy rate remains stable for the upcoming year, what is the forecasted vacancy rate?

16.7%

Fred is appraising a 4-unit apartment building with monthly per-unit rentals of $750. The vacancy rate is 10% and the net income ratio is 30%. If the value rendered by Fred is $300,000, what is the EGIM?

9.26

Operating Statement

A financial statement that reflects the gross revenues, expenses, and net operating profit or loss of an investment over a fixed period.

Net Lease

A lease in which the landlord passes on all expenses to the tenant.

Occupancy

A physical presence within and control of a property

Pro Forma

A projected income and expense statement for proposed development. See also reconstructed operating statement

Reconstructed Operating Statement

A statement prepared by an appraiser to reflect potential future performance of a property allowing consideration of the historical income and expenses of an investment property. In preparing reconstructed operating statements, appraisers may consult accountants' financial balance sheets, comparable properties, auditors' statements, or historical data provided by the ownership entity.

Sean is appraising a duplex and has found two good comparables in the subject's immediate area. A duplex on Zoll Street sold for $225,000 and a 4-plex on Hobbin Avenue sold for $350,000. ||The Zoll Street units rent for $750 and $800 per month and the operating expenses are 15% of the rent roll.||Each of the four units on Hobbin Avenue rent for $600 and the operating expenses are 19% of the rent roll.||What would Sean most likely conclude is a reasonable capitalization rate and GIM in the subject's market?

Cap rate 7%, GRM 145

The amount of rent for a property indicated in the lease is the?

Contract Rent

In which type of lease does the lessor pay the property taxes, property insurance, and maintenance expenses?

Gross Lease

Compound Interest

Interest paid on the principal amount, as well as any accumulated interest.

Property Taxes

On a reconstructed operating statement, which of the following items is considered a fixed expense?

Going-In Capitalization Rate

Overall capitalization rate obtained by dividing a property's net operating income for the first year after purchase by the sale price of the property.

Safe Rate

The minimum rate of return on invested capital. Theoretically, the difference between the total rate of return and the safe rate is considered a premium to compensate the investor for risk, the burden of management, and the illiquidity of the capital invested; also called riskless rate or relatively riskless rate.

Residual

The quantity left over; in appraising, a term used to describe the result of an appraisal procedure in which known components of value are accounted for, thus solving for the quantity that is left over, such as land residual or building residual

Appraiser George is rendering an opinion of the market rent of an apartment building. The product he is generating is a(n)

appraisal

An appraiser reconstructs an operating statement when using the income approach to:

develop an estimated projection of expected income and expense that reflect the earning capacity of the property

If the contract rent exceeds market rent the difference is called ?

excess rent

The formula to calculate the operating expense ratio for a property is:

operating expenses / effective gross income

An office building has an effective gross income of $185,000, a vacancy rate of 10%, and an effective gross income multiplier of 5.5. What is the office building's indicated value?

$1,017,500

A 2-unit apartment building is being appraised. The vacancy rate is 7%. The net income ratio is .45. The net operating income is $50,000. What is the potential gross income per year?

$119,474

Given the following market rents and a vacancy rate of 5%, what is the potential gross income of the apartment building?||5 one-bedroom units @ $800 each|2 two-bedroom units @ $1,000 each|4 three-bedroom units @ $1,500 each|

$144,000

Appraiser Janet is appraising a duplex in Morgantown, a densely-populated urban are Market rents for the subject units are $1,100 and $1,250 respectively. Janet discovers the following rental sales in Morgantown: 1. $150,000 sale price; $2,300 rent, 2. $165,000 sales price; $2,400 rent, 3. $140,000 sales price; $2,545 rent, 4. $170,000 sales price; $2,660 rent, 5. $167,000 sales price; $2,250 rent. Janet examines the relevant characteristics for each comparable, and weighs them as follows: Sale 1 - 20%; Sale 2 - 40%; Sale 3 - 10%; Sale 4 - 20%; and Sale 5 - 10%. After performing a reconciliation of the gross rent multipliers (GRMs), what is Janet's estimate of value for her subject property?

$156,000

Appraiser Lindy is collecting data for the 4-unit apartment building she is appraising. The assignment is to render an opinion of value for the property for listing purposes. Lindy has collected the following information: Apt A is rented for $500/month; Apt B for $550/month; Apt C for $660/month; and Apt D for $800/month. The vacancy rate is 10%. Lindy has determined that the operating expense ratio for the subject property is 45%. Lindy has researched the following comparable sales: 1) 123 Main St with an NOI of $20,000 and sales price of $222,000; 2) 847 Exeter Blvd with an NOI of $15,000 and sales price of $167,000; and 3) 556 Smith Road with an NOI of $14,000 and a sales price of $155,000. After deriving the capitalization rate from the market data above, what should Lindy's value be (rounded to the nearest thousand)?

$166,000

Pet Paradise pet store leases space in Northcoast Mall. Under its lease, Pet Paradise must pay a base rent of $2,000 per month. If sales revenue exceeds $50,000 per month, Pet Paradise must pay 5% of the extra sales. If Pet Paradise's total sales are $60,000 this month, how much total rent do they have to pay?

$2,500

Fred is appraising a 4-unit apartment building with a full basement and flat, rubber membrane roof. Two of the apartments are rented for $1,000/month each; two are rented for $850/month each. The leases are month-to-month. The vacancy rate is 2% per annum. The collection loss is 2% per annum. The annual expenses are: ad valorem taxes: $2,500; hazard insurance premium: $800; utilities: $8,500; maintenance: $1,050; debt service: $10,750; management: 5% of PGI. The cap rate is 8.5%. Fred has been asked to appraise the impact of replacing the boiler with a new, energy-efficient model. If this is done, the utilities should decrease by $1,000 per annum, and the cap rate will lower to 8%. Rounded to the nearest thousand, what is the: "as-is" value and the "as-repaired" value? If the repair costs $20,000, is the project feasible?

$324,00; $357,000 ; Yes

Property owner Harriet is concerned about her water heater. She wants to start saving up to replace the water heater, which has a useful life of 10 years. The estimated cost of the water heater will be $5,000. Assume the interest rate is 5% per annum. Using the sinking fund factor of .07950457, what is the estimated replacement reserve for the water heater?

$397.52

A 12-unit apartment building generates the following rents: 6 units at $500/month; 6 units at $750/month. The vacancy rate is 10%. Operating expenses total $45,000/year. The capitalization rate is 8.5%. What is the indicated value (rounded to the nearest thousand)?

$424,000

A small free-standing commercial building is being appraise The lease calls for $4,000/month rent. Similar properties in the same market are rented for $4,500/month. The subject property and all comparables have similar lease terms: the owner pays real estate taxes and hazard insurance premiums, plus most utilities. The subject and comparables have lease terms of 5 years. If the gross rent multiplier is 125, what is the value of the fee simple estate? The leased fee estate? Round down to the nearest $1,000.

$562,000 ; $500,000

As the capitalization rate increase, the value_____?

Decreases

Teri is appraising a duplex and has found three good comparables in the subject's immediate area. A duplex on Brook Lane sold for $295,000, a duplex on Zoll Street sold for $225,000, and a 4-plex on Hobbin Ave sold for $345,000.||Each unit on Brook Lane rents for $1,000 per month and the expenses are 12% of annual gross rent. The total building area is 1,690 square feet.||The Zoll Street units rent for $775 and $800 per month and the operating expenses are 15% of the rent roll. The total building area is 1,870 square feet.||Each of the 4 units in the Hobbin Avenue property rents for $600 and the operating expenses are 21% of gross. The total building area is 2,640 square feet. ||Which comparables have the highest GIM and the lowest capitalization rate?

Hiest GIM Brook, lowest cap rate Hobbin

Operating Income

Income derived from the operation of a business or real property; indicates a stage in the profit and loss account where all direct costs and income from the operation have been taken into account; as distinguished from net profit or cash flow.

Frank is appraising a brick, 6-unit apartment building with a flat, rubber membrane roof cover. The actual age of the building is 51 years. The assignment is to appraise the property for mortgage lending. The property manager shares the following data from the income/expense report: PGI: $135,000. EGI: $121,500. Operating expenses: $73,000. Debt service: $23,000. Frank ascertains that the property manager's data are in line with other, similar properties in the subject market. Frank discovers three comparable sales in the immediate vicinity: Sale 1: Sale price $570,000; NOI $48,000; Sale 2: Sales price $600,000; NOI $51,000; and Sale 3: Sales price $525,000; NOI $45,000. Given the sales data above, what is the appraised value of the subject property? (Round to the nearest thousan)

$571,000

A brick 4-unit apartment building consists of two 2-bedroom units, and two 1-bedroom units. The 2-bedroom units each rent for a contract rent of $2,000/month. The 2 1-bedroom units each rent for a contract rent of $1,500/month. The vacancy rate is 5%. The fixed expenses total $12,500; variable expenses total $15,500; and replacement reserves total $4,000. The debt service is stabilized at $25,000 per year. The capitalization rate is 8.25%. What is the value of the property rounded to the nearest thousand?

$579,000

A clothing store tenant agrees to pay $20,000 rent per year if sales are under $300,000 and 5% of sales in excess of that amount. If the tenant pays $35,000 in rent, what were the sales for that year?

$600,000

An investment property has an NOI of $24,000 per annum and an OER of 40%. The EGIM is 15. What is the indicated value of the property?

$600,000

The effective gross income of a property is $125,000 and its operating expenses are 32% of the effective gross income. If the capitalization rate is 14%, what is the value of the property? (Round to the nearest whole number)

$607,143

Replacement Allowance

An allowance that provides for the replacement of building components that wear out more rapidly than building itself and must be replaced during the buildings economic life; sometimes referred to as reserves or reserves for replacement.

Reserve

An appropriation from surplus funds that is allocated to deferred or anticipated contingencies. In business, a credit account created to accumulate funds to retire debt or cover losses that are payable or expected to accrue in the future.

Overall Capitalization Rate (Ro)

An income rate for a total real property interest that reflects the relationship between a single year's net operating income expectancy and the total property price or value (Ro = Io/Vo).

Capital Expendature

An outlay of funds designed to improve the income-producing capabilities of an asset or to extend its economic life.

Residual Capitalization Rate

An overall capitalization rate used to estimate the resale price of the property; usually based on the anticipated stabilized income for the year beyond the holding period; also called terminal capitalization rate.

Investment Property

Any piece of property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the property value over time.

Roy is appraising a duplex and has found three good comparables in the subject's immediate area. A duplex on Merry Lane sold for $295,000, a duplex on Napa Street sold for $225,000, and a 4-plex on Durango Ave sold for $345,000. Merry Laneâ€"Each unit rents for $1,000 per month and the expenses are 12% of annual gross rent. The total building area is 1,690 square feet. Napa Streetâ€"The units rent for $775 and $800 per month and the operating expenses are 15% of the rent roll. The total building area is 1,870 square feet. Durango Avenueâ€"Each of the 4 units rents for $600 and the operating expenses are 21% of gross. The total building area is 2,640 square feet. Which comparable has both the highest dollar per square foot and the highest GRM?

Merry

Royalty

Money paid to an owner of real property or mineral rights for the right to deplete natural resource (e.g., oil, gas, minerals, stone, builders' sand and gravel, timber); usually expressed as a portion of the revenue received for, or price per unit of, the resource extracted.

Pre-tax cash flow (PTCF) is

NOI minus debt service

By using the income approach, an appraiser can estimate value by applying an overall capitalization rate to:

Net operating Income

Fixed Expense

Operating expenses that generally do not vary with occupancy and that prudent management will pay whether the properties occupied or vacant

Sean is appraising a duplex and has found two good comparables in the subject's immediate area. A 1,870 square foot duplex on Zoll Street sold for $225,000, and a 2,640 square foot 4-plex on Hobbin Ave sold for $350,000. ||The units on Zoll Street rent for $750 and $800 per month and the operating expenses are 15% of the rent roll.||Each of the 4 units on the Hobbin Street property rents for $600 and the operating expenses are 19% of the rent roll.||Which comparable has the highest value per unit and highest value per square foot?

Per unit Zoll , per square foot Hobbin

A percentage lease is characterized by

a monthly base rent plus a percentage of sales over a set minimum.

Vacancy

The current percentage of vacant properties in a given area, regardless of why they are vacant.

Market Rent

The most probable rent the property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs)

Market VacancyT

The overall vacancy rate that occurs as a result of the interaction of supply and demand of a particular property type in a particular region or market. Market vacancy can be equal to frictional vacancy if the market has no structural problems; it can be less than frictional vacancy in rent-controlled markets.

Anticipation

The perception that value is created by the exception of benefits to be derived in the future.

Cash Flow

The periodic income attributable to the interests in real property.

Discounted Cash Flow ( DCF) Analysis

The procedure in which the discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate.

Overall Yield Rate

The rate of return on the total capital invested, including both debt and equity. Also called property yield rate. When applied to cash flows, it is called a discount rate.

Debt Equity Ratio

The ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the home. Equity is calculated at the fair-market value of the home, less any outstanding mortgage debt.

Operating Expense Ratio (OER)

The ratio of total operating expenses to effective gross income (TOE/EGI); the complement of the net income ratio; i.e., OER = 1 - NIR.

Potential Gross Income (PGI)

The total income attributable to real property at full occupancy before vacancy and operating expenses are deducted

Present Value

The value of a future payment or series of future payments discounted to the current date or to time period zero.

Discount Rate

The yield rate used to convert future payments or receipts into present value; usually considered to be a synonym for yield rate.

Fixed expenses are called fixed because they______

do not change based on occupancy levels of the property.

A lease where the rent is based on a known factor or aggregate is called a

index lease

In a net lease, the lessee is normally not responsible for_____?

mortgage debt service

The capitalization rate(R0) is the

rate of return of and on investment

Cash basis accounting

records revenue earned when the revenue is received.

Accrual basis accounting

records revenue earned, whether received or not

The gross rent multiplier (GRM) and gross income multiplier (GIM) usually differ in that____

the GRM is monthly; the GIM is annual.

The break-even ratio measures

the occupancy level at which a property can cover NOI and debt service.

Net Leaseable Area

The space in a development, outside of common areas, that can be rented to tenants.

A property's potential gross income, less its vacancy and collection loss, equals its:

Effective gross income

An income-producing property has a capitalization rate of 10% and its property taxes increase by $400 per month. Which of the following is true of the property's value?

It will decrease by $48,000.

The debt coverage ratio ( DCR) is

NOI / debt service

As risk increase, the capitalization rate_______?

increases

A retail store located in a neighborhood shopping center leases for $500 per month, plus 2% of the gross sales over $50,000. What were the gross sales for the year if the total rent paid for the year is $8,000?

$150,000

Property owner Bob is concerned about his roof cover. He wants to start saving to replace the roof cover, which has a useful life of 20 years. The estimated cost of the roof cover will be $40,000. Using a straight-line method, what is the estimated replacement reserve for the roof?

$2,000

Future cash flows dictates what?

The current value of what a buyer is willing to pay for the property.

Net Operating Income

The actual or anticipated net income that remains after all operating expenses are deducted from the effective gross income but before mortgage debt service and book depreciation are deducted. Note: this definition mirrors the convention used in corporate finance and business valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization).

Risk rate

The annual rate of return on capital that is commensurate with the risk assumed by the investor; the rate of interest or yield necessary to attract capital.

Internal Rate of Return (IIR)

The annualized yield or rate of return on capital that is generated or capable of being generated within an investment or portfolio over a period of ownership. Alternatively, the indicated return on capital associated with the projected or pro forma income stream.

Effective gross income( EGI)

The anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses and an addition is made for any other income.

A property is purchased with favorable financing. What would be the most likely effect of the favorable financing on the overall capitalization rate extracted from this sale?

The cap rate would be lower.

Net Net Net Lease (NNN)

A lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management. Sometimes referred to as a "triple-net" lease. Note: this term may have a different definition in some geographic areas and markets.

Reversion

A lump sum benefit that an investor receives or expects to receive upon the termination of an investment; also called reversionary benefit

Direct Capitalization

A method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, either by dividing the net income estimate by an appropriate capitalization rate or by multiplying the income estimate by an appropriate factor. Direct capitalization employs capitalization rates and multipliers extracted or developed from market data. Only a single year's income is used. Yield and value changes are implied but not identified.

Income Property

A piece of property for which the highest and best use is the generation of income through rents or other sources.

Rent Roll

A report that is prepared regularly, usually each month, and indicates the rent-paying status of each tenant

Income Capitalization Approach

A set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market-derived capitalization rate that reflects the specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.

Annuity

A sum of money paid at regular intervals, often annually.

Debt coverage ratio ( DCR) measures?

Adequacy of Net Operating Income to cover debt service.

Alex is going to buy a property worth $800,000. His gross income will be $72,000 and his net operating income will be annually $58,800. His monthly mortgage payment will be $4,700. What is Alex's overall rate going to be on this investment?

7.35%

A 6-unit mixed use building has the following rents: Units A - E are apartments. Unit F is a store. Unit A: $700/month; Unit B: $700/month; Unit C: $825/month; Unit D: $900/month; Unit E: $1,050/month; Unit F: $2,500/month base rent, with a percentage lease that charges the tenant 5% overage rent for any sales over $300,000/year. The store has projected sales of $500,000 this year. The property is an older structure with older mechanicals. All leases are on a gross basis. The vacancy rates are 5% residential and 10% commercial. Expenses: ad valorem taxes: $7,500; hazard insurance: $1,200; utilities: $12,500; maintenance: $2,500; debt service: $35,000. The water heater has a 10-year life and estimated replacement cost of $10,000. The roof cover has a 20-year life and an estimated replacement cost of $20,000. Use the straight-line method to calculate replacement reserves. If the capitalization rate is 8.5%, what is the estimated value of the property rounded to the nearest $1,000?

$681,000

A property owner offers a tenant one month free rent if she signs a one-year lease for $900 per month. What is the effective monthly rent?

$825

The annual rent of a store is $50,000. The estimated vacancy rate is 10%. The annual expenses are: real estate taxes of $14,500; insurance premium of $1,900; management fee of $2,500; maintenance cost: $6,750. The operating expense ratio is __________; and the net income ratio is _______________.

.57 , .43

A mortgage has the following terms: loan amount $100,000; interest rate 5%; term 30 years. Payments are monthly. The principal and interest payments per month are: $536.82. The mortgage constant is

0.06441859

A $100,000 loan has monthly payments of $918.70. The first month's interest totals $843.33 and the principal is $75.37. What is the annual mortgage constant?

0.11

An apartment complex earns an annual effective gross income of $64,000. It has $30,000 in fixed expenses and $17,000 in variable expenses. What is the apartment complex's operating expense ratio?

0.73

Capitalization Rate

1. Any rate used to convert income into value. 2. A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor's potential return on his or her investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property. If you want to get technical, it is basically the discount rate of a perpetuity.

An office building sold for $300,000, and earns an annual net operating income of $52,000. Its effective age is 8 and its total economic life is 50 years. What is the capitalization rate indicated by this sale?

17.3%

A rental property has an annual gross income of $100,000, a vacancy allowance of $5,000, operating expenses of $30,000, and an annual total loan payment of $10,000 ($8,000 is interest). What is its net operating income?

65,000

Harriet is trying to establish an economic life for her subject property. She has found a comparable sale that is quite similar to her subject, and is located in the same market. It sold for $500,000 one month ago, and the sale price is reflective of market value. The building is 20 years old, and Harriet assumes the actual age is reflective of the effective age. The cost new of the building is $569,500. Harriet contacted the listing agent of the comparable and discovered that, prior to the sale, the comparable's site had a ground lease with an NOI of $10,000 and a land cap rate of 10%. Given these data, what is the estimated economic life of the improvements of the comparable sale property?

67 years

A property with a potential gross income of $24,000 sells for $210,000. What is the potential gross income multiplier?

8.75

Frictional Vacancy

The amount of vacant space needed in a market for its orderly operation. In a stabilized market, where supply and demand are in balance, frictional vacancy allows for move-ins and move-outs. In markets for income-producing property, frictional vacancy measures the lost rental income as leases roll over and expire.

A method using a weighted average of the equity and debt components of an investment to build a capitalization rate is called the

band of investment technique

Cynthia is appraising a 4-unit apartment building. She is performing the income approach and needs to organize income and expenses in one handy spreadsheet. The best way to do this is to

create an operating statement