Name APPRAISAL PROBLEM Estimate the present market value of a 10 unit apartment house given the following information pertaining to the property. Each apartment has 1,000 square feet of living area, 3 bedrooms, and kitchen appliances Tenants pay their own utilities The value of the land is $250,000 The estimate replacement value is $150 per square foot for this type of construction. Total operating expenses insurance and property taxes for the year are expected to be $25,000 Rental income, $6,000 month/ allow 5% for vacancy and non-payment Management fees are 6% of total rents collected The building is 20 years old and has an estimated future useful life of 20 more years. A First mortgage is available at 6% for 75% of the purchase price. Equity will be used as the other 25% of the purchase price and the owner requires a return of 12% on the equity investment. Compute the following for the income Approach and the Replacement Cost Approach for estimating the value of income producing property: Total Annual Rental Income minus the vacancy allowance Total Annual Investment Property Expenses List Annual each expense: a) Net income before capitalization b) Capitalization rate adjusted for recapture c) Estimated value of this property using the income approach d) Estimated value using the replacement cost approach