HE NEXT THREE $(3)$ QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

You are appraising a property using the income approach. You have gathered the following information regarding two comparable properties and the subject property. Long term vacancy and bad debt allowance rates for all buildings are expected to be $3\%.$ Vacancy and bad debt allowance applies also to the parking and laundry revenue.

Subject Property

Patricia's Place

Tommy's Towers

Gross Potential Rent

$$835,000$

$$860,000$

$$720,000$

Other Income:

Potential Parking Revenue

$11,600$

$10,200$

$9,400$

Potential Laundry Revenue

$4,700$

$5,300$

$4,100$

Operating Expenses

$252,000$

$255,000$

$243,000$

Sale Price

$?$

$7,900,000$

$8,250,000$

Question $1$

The net operating income $($rounded to the nearest dollar$)$ for the subject property is:

$$542,139$

$$573,761$

$$597,568$

$$583,600$

VQuestion $2$

Assume that the appropriate market capitalization rate is $7\mathrm{.}15\%$ and that the appropriate net operating income of the subject property is $$620,000.$ What is the value of the subject property rounded to the nearest $$1,000?$

$$87,000$

$$8,000,000$

$$8,671,000$

$$4,433,000$

Question $3$

The yield of Tommy's Towers and Patricia's Place are:

$6\mathrm{.}71\%$ and $8\mathrm{.}23\%$ respectively.

$8\mathrm{.}23\%$ and $6\mathrm{.}71\%$ respectively.

$5\mathrm{.}68\%$ and $7\mathrm{.}52\%$ respectively.

$7\mathrm{.}52\%$ and $5\mathrm{.}68\%$ respectively.