Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following property information is provided. Net operating income {MOI} $05,000 Debt service {D3} $05,000 Mortgage Amount $610,000 Loan-to-value ratio {M} 0.?5 Calculate the indicated

image text in transcribed

image text in transcribed
The following property information is provided. Net operating income {MOI} $05,000 Debt service {D3} $05,000 Mortgage Amount $610,000 Loan-to-value ratio {M} 0.?5 Calculate the indicated debt coverage ratio. Calculate the mortgage constant. or mortgage capitalization rate {Rm}. Using the debt coverage ratio and the other information provided, calculate the overall rate {R0} for this property. d. The property you are attempting to appraise using the income approach has a MOI of $135000. Can you use the above information {a through c) to estimate the value of this property? If so. what is it? e. What role does the loan-to-value ratio play in this valuation approach? PF

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Finance questions