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Calculate the property indicated market value

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Reference no: EM132072515

Question - Given the following owner's income and expense estimates and with vacancy and collection losses at 5 percent of potential income for an apartment property, formulate and reconstructed operating statement that provides an estimate of net operating income (NOI). The building consists of 10 apartment units that can rent for $550 per month each. Note: there may be items in the owner's statement that should not be included in the operating statement.

Owner's Income Statement

Rental Income (last year)

60000

Lights

2200

Heat

1700

Janitor

4600

Water

3700

Depreciation (tax)

5000

Maintenance

4800

Repairs

2800

Management

3000

Mortgage Payments

6300

Using the calculated NOI and a capitalization rate of 11.0 percent, calculate the property's indicated market value. Round your final answer to the nearest $1,000.

Reference no: EM132072515

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