Gross Operating Income is Effective gross income plus other income Income minus expenses Takes into effect debt service Takes into effect capital expenditures The value of the average-sized finished lot is about the value of an undeveloped acre of land. Has no relationship One-third Equal Twice An investment property generates $250,000 income. How much is an investor looking for a cap rate of 10 willing to pay for the investment? $2,500,000.00$25,000.00$2,500.00 He would not buy this investment A property was purchased for $116,000. The investor had to put in $30,000 cash to get the property. It has net income after tax of $2,400. What is the after tax ROI or Cash on Cash return? Too good 8% 3.8% Too bad