Property Valuation
An Alaska appraiser is estimating the value of a 20-unit apartment complex. The appraiser determines the NOI is $95,000 and selects a cap rate of 7%. The indicated value by the income approach is:
A$1,150,000
B$1,250,000
C$1,357,143✓ Correct
D$1,500,000
Explanation
Value = NOI ÷ Cap Rate. $95,000 ÷ 0.07 = $1,357,142.86, approximately $1,357,143. To solve this, multiply the relevant values: $95,000 at 7%.. The correct answer is $1,357,143.. This is a common calculation on the Alaska real estate exam.
Related Alaska Property Valuation Questions
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