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The income approach to appraisal is most commonly used for which type of property?

Correct Answer

C) Rental and investment income-producing properties

The income approach is most commonly used for rental and investment income-producing properties, such as apartment complexes, office buildings, and retail centers. It estimates value based on the property's ability to generate future income, typically by capitalizing the net operating income (NOI) using an appropriate capitalization rate.

Answer Options
A
Owner-occupied single-family homes
B
Vacant land with no improvements
C
Rental and investment income-producing properties
D
Historic landmarks and special-use properties

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Related Topics & Key Terms

Related Topics:

net operating income (NOI)capitalization rategross rent multipliersales comparison approachcost approach

Key Terms:

income approachnet operating incomecapitalization rateinvestment propertyrental property
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