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A property with a variable income and unknown resale price: Property with a 5-year holding period; The reversion at the end of the holding period
A property with a variable income and unknown resale price: Property with a 5-year holding period; The reversion at the end of the holding period is estimated to increase by a total of 18% over the entire holding period. Discount rate for the net operating income and for the reversion for the property is determined by the appraiser to be 10\%; Fist year's net operating income is $325,493; net operating income increases every year by 3% over previous year's net operating income. Vacancy rate is 3% of gross income. Operating expenses also increase at 4% per year
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