Learning Objectives
– Describe the typical operating expenses borne by the owner of an apartment building
– Identify items omitted from the calculation of net operating income and describe why these items are omitted
– Derive reasonable operating expenses and rental values for a subject property based on evidence from comparable properties and, using this information, compute the net operating income of the subject property
– Calculate yields earned on the sales of properties
– Estimate the market value of a property using the capitalization process
– Describe the relationship between sale price (or market value), net operating income and yield (or capitalization rate)
Recent Comments