Reading 46: Income Property Analysis and Appraisal-LOS c 习题 annual, property, investment, div, class

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Session 13: Alternative Asset Valuation
Reading 46: Income Property Analysis and Appraisal

LOS c: Estimate the market value of a real estate investment using the direct income capitalization approach and the gross income multiplier technique.

 

 

 

Assume that a property has a gross annual income equal to $150,000, and that comparable properties have a gross income multiplier equal to 11.25. The gross income multiplier approach provides a market value for this property that is closest to:

A) $1,625,000.

B) $1,687,500.

C) $1,333,333.

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Gross income multiplier technique: MV = gross income × income multiplier.
MV = $150,000 × 11.25 = $1,687,500

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Assume that a property has an estimated net operating income (NOI) equal to $150,000. Further assume that comparable properties have a capitalization rate of 11%. The direct income capitalization approach provides a market value for this property that is closest to:

A) $13,636,363.

B) $1,363,636.

C) $1,500,000.

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Assume that a property that you are evaluating has a gross annual income equal to $230,000, and that comparable properties are selling for 10.5 times gross income. The gross income multiplier approach provides a market value for this property that is closest to:

A) $2,587,500.

B) $2,190,476.

C) $2,415,000.

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Gross income multiplier technique: MV = gross income × income multiplier.
MV = $230,000 × 10.5 = $2,415,000