You are considering a rental property investment. You estimate gross potential income of $100,000 per year. You
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You are considering a rental property investment. You estimate gross potential income of $100,000 per year. You expect, however, an average vacancy rate of 5 percent. Operating costs will average $45,000 per year. A similar property with an estimated NOI of $60,000 recently sold for $480,000. Based on this information, what is the estimated value of the rental property that you are considering?
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1 NOI 100000 1 05 45000 50000 2 Find the ma...View the full answer
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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