hard · National Real Estate Exam valuation
During a transaction review led by Taylor Hayes, the following issue arises: The property is purchased primarily for the income stream it can produce.
What is the best next step?
- Base value only on the owner’s original construction cost.
- Capitalize stabilized NOI using a market-supported capitalization rate.
- Use the seller’s mortgage balance as the property’s market value.
- Capitalize gross potential income without accounting for vacancy or operating expenses.
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