Assume the asking price for a small apartment property is $1,800,000, and similar properties are selling...
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Assume the asking price for a small apartment property is $1,800,000, and similar properties are selling at cap rates of 6.5%. If you assume VC&L are 5 percent of PGI and operating expenses are 40 percent of EGI. What is the rent (i.e., PGI) needed to support the $1.8 million price tag? Assume there is no misc. income, expenses, or capital expenditures.(in two decimal places X.XX) Assume the asking price for a small apartment property is $1,800,000, and similar properties are selling at cap rates of 6.5%. If you assume VC&L are 5 percent of PGI and operating expenses are 40 percent of EGI. What is the rent (i.e., PGI) needed to support the $1.8 million price tag? Assume there is no misc. income, expenses, or capital expenditures.(in two decimal places X.XX)
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To calculate the rent PGI needed to support the 18 million price tag we need to use the following in... View the full answer
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date:
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