easy · National Real Estate Exam valuation
At a brokerage training meeting, Cameron Bennett evaluates this fact pattern: The property is purchased primarily for the income stream it can produce.
Which conclusion is most accurate?
- Capitalize gross potential income without accounting for vacancy or operating expenses.
- Use the seller’s mortgage balance as the property’s market value.
- Capitalize stabilized NOI using a market-supported capitalization rate.
- Base value only on the owner’s original construction cost.
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