PLEASE HELP. SOME ONE GAVE WRONG ANSWER

CASE STUDY ONE: Income Approach (10 marks) Yeu are applaising a 4-storey apartment building in downtown Calgary, containing 35 suites. The suies are described below: Type of Suite Bachelor 1 Bedroom 2 Bedroom Number of Suites Monthly Rent (per unit) $575.00 $775.00 $1,100.00 17 10 Parking is included in the rental of the suites. The current owner has a miserable record of managing the building and this has resulted in vacancy and collection losses of S30,000. Some of the suites are vacant at present, despite the fact that rents are considered to be $100 per suite lower than comparable market rents. The owner has provided the following account of his expenses Caretaker/Janitor Property Taxes Insurance Utilities Repair Management fee 4% (rounded) Depreciation Supplies Decorating Mortgage Interest Miscellaneous TOTAL 45,000 18,000 3,400 13,000 0 15,000 17,000 3,500 0 36,800 $157,000 Vacancy rates in the area are 2%, and collection losses on average in the area are 2%, for a total of 4%. CASE STUDY ONE: Income Approach (10 marks) Yeu are applaising a 4-storey apartment building in downtown Calgary, containing 35 suites. The suies are described below: Type of Suite Bachelor 1 Bedroom 2 Bedroom Number of Suites Monthly Rent (per unit) $575.00 $775.00 $1,100.00 17 10 Parking is included in the rental of the suites. The current owner has a miserable record of managing the building and this has resulted in vacancy and collection losses of S30,000. Some of the suites are vacant at present, despite the fact that rents are considered to be $100 per suite lower than comparable market rents. The owner has provided the following account of his expenses Caretaker/Janitor Property Taxes Insurance Utilities Repair Management fee 4% (rounded) Depreciation Supplies Decorating Mortgage Interest Miscellaneous TOTAL 45,000 18,000 3,400 13,000 0 15,000 17,000 3,500 0 36,800 $157,000 Vacancy rates in the area are 2%, and collection losses on average in the area are 2%, for a total of 4%