Annual potential rent is $95,000. Apply 7% combined loss to rent only, then add $3,400 of other collectible real-estate income already stated after its losses. What EGI results?
Correct Answer
C) $91,750
95000×0.93+3400 = 91750. Common errors: leaving out the other income gives $88,350; applying the 7% loss to the other income as well gives $91,512; not deducting the 7% loss gives $98,400.
Why This Is the Correct Answer
95000×0.93+3400 = 91750. Common errors: leaving out the other income gives $88,350; applying the 7% loss to the other income as well gives $91,512; not deducting the 7% loss gives $98,400.
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Debt funds 70% of value at an annual mortgage constant of 7.2%, and the remaining equity has a current annual dividend rate of 10.5%. What overall rate does the band of investment indicate?
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An appraiser is valuing a rental house near a university. It rents for $3,000 per month during the nine-month academic year and $1,000 per month during the three summer months. A similar nearby rental house recently sold for $420,000. That house rents for $3,000 per month during the academic year and $2,200 per month during the summer. Operating expenses for the two houses are similar. What is the indicated value of the subject by gross income multiplier?