A building has a total of 50 units that each rent for $2,500.00 a month. The vacancy rate is 5%, there is a $7,000 annual
A building has a total of 50 units that each rent for $2,500.00 a month. The vacancy rate is 5%, there is a $7,000 annual collection loss, and $10,000 annual vending machine income. The operating expenses are 45% of the effective gross income. The Rate of Return is 4.3%. What is the value of this building?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To determine the value of the building we can use the income approach to real estate valuation speci...
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Cliff Ragsdale
7th Edition
1285418689, 978-1285969701, 1285969707, 978-1285418681
