Page 22 - REAL ESTATE - Broker Opinion & Marketing Proposal
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EXPENSE & INVESTMENT VALUE
REVENUE
GROSS MONTHLY INCOME $16,077
GROSS ANNUAL INCOME $192,924
EXPENSES (ESTIMATED)
REAL ESTATE TAXES (05/06) $12,426
WATER/SEWER $1,500
INSURANCE $7,000
FUEL $7,500
ELECTRIC (COMMON AREAS) $750
REPAIRS & MAINTENANCE $6,500
SUPER $2,400
MANAGEMENT (4%) $7,717
TOTAL $45,793
GROSS ANNUAL INCOME $192,924
LESS EXPENSES $45,793
NET OPERATING INCOME $147,131
INVESTMENT ANALYSIS
(CAPITALIZATION APPROACH)
NET OPERATING INCOME / CAPITALIZATION RATE = VALUE
$147,131 / 4.5% $3,269,579
SAY $3,275,000
INVESTMENT ANALYSIS
(GROSS RENT MULTIPLE APPROACH)
GROSS INCOME x GROSS RENT MULTIPLE = VALUE
$192,924 x 16 $3,086,784
SAY $3,100,000
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