Your subject property includes 56 farmable acres that are currently leased on a cash rent basis...

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Your subject property includes 56 farmable acres that are currently leased on a cash rent basis for $400 per acre annually. The dwelling is currently leased for $1,000 per month. The owner typically pays for property taxes totaling $12,000 annually for the entire property. They are also responsible for insurance and maintenance which has averaged $3,500 annually. You determine that both leases are at market. You determine that while no vacancy or collection loss is applicable on the cropland the market recognizes a vacancy/collection loss rate of 4% on the dwelling. What is the value of your subject utilizing a capitalization rate of 1.30% ? Round your answer to the nearest dollar. Your subject property includes 56 farmable acres that are currently leased on a cash rent basis for $400 per acre annually. The dwelling is currently leased for $1,000 per month. The owner typically pays for property taxes totaling $12,000 annually for the entire property. They are also responsible for insurance and maintenance which has averaged $3,500 annually. You determine that both leases are at market. You determine that while no vacancy or collection loss is applicable on the cropland the market recognizes a vacancy/collection loss rate of 4% on the dwelling. What is the value of your subject utilizing a capitalization rate of 1.30% ? Round your answer to the nearest dollar.

Answer rating: 100% (QA)

The value of an incomeproducing property can be estimated using the formula textProperty Value fracN... View the full answer