You must attempt to appraise a 28-unit apartment house employing the income approach. You discover that each unit rents for $750 a month, an amount that seems consistent with like rental units in the vicinity. For the last five years the annual expenses of operation have averaged $86,200. The complex has maintained a consistent occupancy rate of 95 percent. A potential investor can only be located if the return is 12 percent. Using just these variables, what would your valuation be?

Answer rating: 100% (QA)

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