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Dropdown is (residential / commercial) Comparing Real Estate Investments Suppose Valerie wants to invest in real estate and is considering two different residential properties. Based
Dropdown is (residential / commercial)
Comparing Real Estate Investments Suppose Valerie wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating expenses of each, she estimates that the first property (property A) has an NOI of $45,000 and that the other (property B) has an NOI of $35,000. If the cap rate is 9%, property A has an estimated value of $ and property B has an estimated value of In deciding between these two properties, it is important for Valerie to consider other factors. For instance, in general, only seasoned investors should invest in property. (Note: Round your answers to two decimal places.) $Step by Step Solution
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