An income-producing property has a projected effective gross income of $65,000. Expenses are estimated at 20% of effective gross income. An appraiser has determined that an appropriate capitalization...
An income-producing property has a projected effective gross income of $65,000. Expenses are estimated at 20% of effective gross income. An appraiser has determined that an appropriate capitalization rate is 8%. What is the estimated market value of this property? A) $485,500 B) $325,000 C) $650,000 D) $812,500
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An income-producing property has a projected effective gross income of $65,000. Expenses are estimated at 20% of effective gross income. An appraiser has determined that an appropriate capitalization...
#1 MULTIPLE CHOICE (no need to show work but please get right) 1. A property has a net operating income of $25,000 and the capitalization rate used in the market is 10%. What is the indicated value? a...
#1 MULTIPLE CHOICE (no need to show work but please get right) 1. A property has a net operating income of $25,000 and the capitalization rate used in the market is 10%. What is the indicated value? a) $250,000 b) $300,000 c) $325,000 d) $2,500,000 2. A property sold for $555,000. The buyer anticipated that the potential gross income (PGI) would be $93,000, the vacancy would be 5%, and expenses would be 35% of the effective gross income (EGI) in...
Student name: 1) Suppose that you are attempting to value an income-producing property using the direct...
Student name: 1) Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from comparable properties, you have determined the overall capitalization rate to be 7.5%. If the projected first-year net operating income (NOI) for the subject property is $135,500, what is the indicated value of the subject using direct capitalization? A) $150,555.56 B) $9,033,333.33 $1,806,666.67 D) $144,985.00 C) $180
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income...
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income after all operating expenses but before capital recapture from a small apartment house is estimated to be $48,000 per year: How much would an investor be willing to pay for the property if first mortgages are available for 75% the purchase price at 5.5% interest and the investor's equity capital investment requires a 15% return. The remaining life of the buildings...
I need help answering these two questions by Friday this week please! Use the information provided...
I need help answering these two questions by Friday this week please! Use the information provided below to estimate the market value of the office building that has been described. Type of Property: Office Building Leasable Space: 75,000 square feet Average Rent: $20 per square foot per year Expected Rent Growth: 3% per year Vacancy and Collection Losses: 10% of potential gross income Other Income: $1.25 per square foot per year Expected Growth in Other Income: 3% per year Operating...
Use the information provided below to estimate the market value of the office building that has been described. Type of...
Use the information provided below to estimate the market value of the office building that has been described. Type of Property: Office Building Leasable Space: 100,000 square feet Average Rent: $20.00 per square foot per year Expected Rent Growth: 4.50% per year Vacancy and Collection Losses: 15.00% of potential gross income Other Income: $1.50 per square foot per year Expected Growth in Other Income: 3.00% per year Operating Expenses: 27.50% of effective gross income Capital Expenditures: 2.50% of effective gross...
Name APPRAISAL PROBLEM Estimate the present market value of a 10 unit apartment house given the...
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...
The asking price for the property is $1.000.000 rents are estimated at $200,000 during the 1st...
The asking price for the property is $1.000.000 rents are estimated at $200,000 during the 1st year and are expected to grow at 5 percent ner vear. Vacancies and collection losses are expected to be 10% of rents. Operating expenses will be 35 percent of effective gross income. Capital expenditures will be 5% of effective gross income. A 30-year fixed rate loan for 70 percent of the purchase price can be obtained at 10 percent interest rate. The property is...
The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for...
The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for upkeep of the property and $1,000 for property taxes. The property is surrounded by a security fence that cost $4,000 to install four years ago a. If i = 12% per year (the MARR) is an acceptable interest rate, how much could you afford to pay now for this property if it is estimated to have a resale value of $150,000 10 years from...
The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for...
The monthly income from a piece of commercial property is $1,200. Annual expenses are $3,000 for upkeep of the property and $1,000 for property taxes. The property is surrounded by a security fence that cost $4,000 to install four years ago. Assume 52 weeks in a year and end-of-year cash flows. a. If i = 12% per year (the MARR) is an acceptable interest rate, how much could you afford to pay now for this property if it is estimated...
real estate case study Case Problem Allen Benedict is thinking of buying an apartment complex that...
real estate case study
Case Problem Allen Benedict is thinking of buying an apartment complex that is offered for sale by the firm of Getz and Fowler. The price, $2.25 million, equals the property's market value. The following statement of income and expense is presented for Benedict's The St. George Apartments Prior Year's Operating Results, Presented by Getz and Fowler, Brokers 30 units, al Washer and dryer rentals Gross annual income Less operating expenses apartments, $975 per month 351,000 361,000...
Student name: 1) Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from comparable properties, you have determined the overall capitalization rate to be 7.5%. If the projected first-year net operating income (NOI) for the subject property is $135,500, what is the indicated value of the subject using direct capitalization? A) $150,555.56 B) $9,033,333.33 $1,806,666.67 D) $144,985.00 C) $180
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income after all operating expenses but before capital recapture from a small apartment house is estimated to be $48,000 per year: How much would an investor be willing to pay for the property if first mortgages are available for 75% the purchase price at 5.5% interest and the investor's equity capital investment requires a 15% return. The remaining life of the buildings...
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...
The asking price for the property is $1.000.000 rents are estimated at $200,000 during the 1st year and are expected to grow at 5 percent ner vear. Vacancies and collection losses are expected to be 10% of rents. Operating expenses will be 35 percent of effective gross income. Capital expenditures will be 5% of effective gross income. A 30-year fixed rate loan for 70 percent of the purchase price can be obtained at 10 percent interest rate. The property is...
real estate case study
Case Problem Allen Benedict is thinking of buying an apartment complex that is offered for sale by the firm of Getz and Fowler. The price, $2.25 million, equals the property's market value. The following statement of income and expense is presented for Benedict's The St. George Apartments Prior Year's Operating Results, Presented by Getz and Fowler, Brokers 30 units, al Washer and dryer rentals Gross annual income Less operating expenses apartments, $975 per month 351,000 361,000...
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