You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $44,500. Four highly similar and competitive apartment properties within two blocks of the subject prop - erty have sold in the past three months. All four offer essen - tially the same amenities and services as the subject. All were open-market transactions with similar terms of sale. All were financed with 30-year fixed-rate mortgages using 70 percent debt and 30 percent equity. The sale prices and estimated first year net operating incomes were as follows:
Comparable 1: Sales price $500,000; NOI $55,000
Comparable 2: Sales price $420,000; NOI $50,400
Comparable 3: Sales price $475,000; NOI $53,400
Comparable 4: Sales price $600,000; NOI $69,000
What is the indicated value of the subject property using direct capitaliation?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $44,500. Four ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Assume that microbrewery beer is a normal good. Prices of microbrewery beer have risen steadily in recent years. Over this same period, prices for fermenting vats used in beer making have also risen and consumer incomes have fallen.
Answers (1)
6 Carla would like to buy a dress, a dresser for her bedroom, and a home theater system. She has one month's worth of living expenses in her emergency fund. Carla decides to save for the home theater system.
Answers (1)
Kay owns a real estate business in Knoxville. She moves her office to Pulaski. When must she notify the Commission of the change? The day after the move. Within 10 days after the move. Within 30 days. 30 days before the move.
Answers (1)
What function is money serving when you buy a ticket to a movie? a. a store of value b. a medium of exchange c. a unit of account d. a flow of funds
Answers (1)
Danny "dimes" donahue is a neighborhood's 9-year-old entrepreneur. his most recent venture is selling homemade brownies that he bakes himself. at a price of $2 each, he sells 100. at a price of $1.5 each, he sells 300.
Answers (1)
New Questions in Business
Diane had a plan to improve her responsibility. in order to understand if she has met her goal, she must A. formulate a new goal B. record her progress C. accomplish harder tasks D. ask others for their opinions
Answers (1)
Olivia's employer deducts an amount from her paycheck for the Medicare program. What type of withholding is being deducted from Olivia's paycheck? A) tax exemption B) local withholding C) state withholding D) Social Security withholding
Answers (1)
A popular variation of the accounts receivable turnover is the a. credit risk ratio. b. concentration of credit risk. c. bad debts ratio. d. average collection period.
Answers (1)
When Japan exports goods to the United States, which Country shows a balance of payments credit
Answers (1)
Love Company's accounting records show an after-closing balance of $42,100 in its Retained Earnings account on December 31, 2018.
Answers (1)