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