Question: Suppose there is a subject property that has an expected first year NOI of $35,000. There are four comparable properties, all of which were financed

Suppose there is a "subject" property that has an expected first year NOI of $35,000. There are four comparable properties, all of which were financed with 30 year fixed rate mortgages and 70% debt, 30% equity. The sale prices and estimated first year NOI for each are listed below:

Comparable 1: Sale Price - $250,000, NOI: $100,000

Comparable 2: Sale Price - $236,000, NOI: $30,680

Comparable 3: Sale Price - $400,000, NOI: $28,000

Comparable 4: Sale Price - $350,000, NOI: $35,000

What is the indicated value of the subject property using direct capitalization? Write down any formula(s) you us?

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