What value would cap rate approach yield

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Reference no: EM131184988

Consider the following information: Property 1: Price = $300,000; Effective gross income = $48,390; % operating expense = 50%; NOI = $24,200. Property 2: Price = $350,000; Effective gross income = $55,500; % operating expense = 55%; NOI = $30,500. Property 3: Price = $375,000; Effective gross income = $60,000; % operating expense =54%; NOI = $32,400. Assume that the subject property has effective gross income of $53,000 and a NOI of $27,500. What value would a cap rate approach yield (rounded to the nearest $100)?

Reference no: EM131184988

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