Question
Comp1 Comp 2 Comp 3 Price $300,000 $350,000 $375,000 Effectice gross income 50,000 55,000 60,000 % Operating expense 50% 55% 54% NOI 25,000 30,000 32,500
| Comp1 | Comp 2 | Comp 3 | |
| Price | $300,000 | $350,000 | $375,000 |
| Effectice gross income | 50,000 | 55,000 | 60,000 |
| % Operating expense | 50% | 55% | 54% |
| NOI | 25,000 | 30,000 | 32,500 |
Consider the table above. Assume that the subject property has effective gross income of $53,000 and a NOI of $27,500.
(a) What value would a GIM approach yield (rounded to the nearest $100)?
(b) What value would a cap rate approach yield (rounded to the nearest $100)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
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
Applied Quantitative Finance
Authors: W.; T. Kleinkow; G. Stahl Hardle
1st Edition
3540434607, 978-3540434603
