Calculate an estimate of the going in cap rate (overall cap rate) based on the following information from 3 comparable sales Assume comparables are weighted evenly Property NOI Sale Price 1 $736,000 $8,600,000 2 $792,000 $8,800,000 3 $686,400 $8,200,000 Ro 1 0 086 2 0 09 3 0 084 Average 0 087 Estim...

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Calculate an estimate of the going-in cap rate (overall cap rate) based on the following information from 3 comparable sales. Assume comparables are weighted evenly.

Property	NOI	Sale Price
1	$736,000	$8,600,000
2	$792,000	$8,800,000
3	$686,400	$8,200,000

1: 0.086

2: 0.09

3: 0.084

Average: 0.087

Estimate the market value using the direct capitalization method [4]
Estimate the market value using the DCF method [2]
Which method do you prefer and why? [1]

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Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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Posted Date: Jan 04, 2024 12:01 AM

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