Income-Capitalization Problem

Your research has indicated that the subject property could be rented to eight college students for 1200 per semester for two semesters per year if the landlord gave summer rent free for those leasing for the two semesters.  Below is a table of Gross Annual Rentals and sales prices for comparable properties:

 Property Gross Rent Sales Price 1 18080 148000 2 21600 165000 3 20480 168000 4 18880 155000 5 18240 150000 6 18400 151000 7 19680 161000 8 19040 156000 9 20640 169000 10 18560 152000

Income Approach Questions:

 Question 1 Multiple Choice (1.0000 points) Question: What is your estimate of the gross rent for the subject property? \$2,400 \$9,600 \$19,200 \$19,360

 Question 2 Multiple Choice (1.0000 points) Question: What is your estimate of the indicated annual gross rent multiplier for comparable property #1? .1222 .6822 8.14 8.19 98.23

 Question 3 Multiple Choice (1.0000 points) Question: Based upon the range of indicated gross rent multipliers, what is the least expected sales price for the comparable property? \$146,667 \$148,000 \$156,326 \$157,500

 Question 4 Multiple Choice (1.0000 points) Question: Based upon the range of indicated gross rent multipliers, what is the most expected sales price for the comparable property? \$157,895 \$159,211 \$169,000 \$175,866

 Question 5 Multiple Choice (1.0000 points) Question: What is your estimate of the market annual gross rent multiplier that should be applied to the subject property based upon the indicated gross rent multipliews for the comparable properties? .1228 8.14 8.19 8.20

 Question 6 Multiple Choice (5.0000 points) Question: What is your estimate of the value of the subject property using the income approach? \$156,326 \$157,241 \$157,311 \$157,500