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Please solve with written steps, please no excel. Trying to understand the step by step solution. A property recently sold for $444,000 (cash equivalent) and
Please solve with written steps, please no excel. Trying to understand the step by step solution.
A property recently sold for $444,000 (cash equivalent) and had $65,700 in potential gross income (PG I) for the following year. The expenses were 33\% of the effective gross income ( EGI). The vacancy and collection losses were estimated at 5%. What is the overall capitalization rate ( R0)? Correct Answer: 9.42%Step by Step Solution
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