Using The Table:

Answer:

Consider the table above. Assume that the subject property has effective gross income of $53,000 and a NOI of $27,500. What value would a GIM approach yield?

Consider the table above. Assume that the subject property has effective gross income of $53,000 and a NOI of $27,500. What value would a cap rate approach yield

Price Effective gross income % operating expense NOI Comp 1 $300,000 50,000 50% 25,000 Comp 2 $350,000 55,000 45% 30,000 Comp 3 $375,000 60,000 46% 32,500