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The Tipton office building has just been purchased for $6,600,000. In the next year, potential gross income (PGI) is expected to be $950,000; vacancy and
The Tipton office building has just been purchased for $6,600,000. In the next year, potential gross income (PGI) is expected to be $950,000; vacancy and collection losses 10% of PGI; $0 miscellaneous income, operating expenses 40% of effective gross income (EGI); and capital expenditures 4% of EGI. What is the implied going-in cap rate based on appraiserominal NOI? O 7.25% O 7.50% 0 7.75% O 6.75% O 7.00%
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