Chapter 8: Valuation using the income approach

Know how to calculate the potential gross income, the effective gross income, the capital expenditure, the net operating income, the net sale proceeds Know the common examples of capital expenditures and operating expenses Know how to derive the average cap rate of a subject property from comparable sales Understand how the level of the cap rate or cap rate spread varies across different property types (office, industrial, apartment etc.) Know how to calculate the present value of a property using DCF