What is the indicated market value by the income approach

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Problem 1: A ten-unit apartment building has market rents of $700 per unit per month. The estimated factor for vacancies and collection losses is 3% of the total annual income. Annual operating expenses are estimated at $17,480. If the capitalization rate selected by the appraiser is 8%, what is the indicated market value by the income approach?

Reference no: EM132989775

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