Why the income approach to appraisal is the preferred choice

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-Discuss why the income approach to appraisal is the preferred choice for investment real estate. What is the cap rate? Why might the cap rate approach be preferred to the discounted cash flow approach. Are there any limitations to the cap rate approach?

-What is the Effective Gross Income Multiplier approach to real estate valuation. What assumptions would need to be met in order for this method to be useful in estimating the value of a property?

Reference no: EM133115515

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