A. Given the following owner’s income and expense estimates for an apartment property, formulate a reconstructed operating statement. The building consists of 10 units that could rent for $550 per month each.
Owner’s Income Statement
Rental income (last year) $60,600
Mortgage payments 6,300 34,100
Net income $26,500
Estimating vacancy and collection losses at 5 percent of potential gross income, reconstruct the operating statement to obtain an estimate of NOI. Remember, there may be items in the owner’s statement that should not be included in the reconstructed operating statement.
B.)Using the NOI obtained above and an Ro of 11.0 percent, calculate the property’s Indicated value. Round your final answer to the nearest $500. Purchase this Tutorial @ 12.00