Property Valuation
Operating expenses in the income approach typically include:
AMortgage payments, depreciation, and income taxes
BProperty taxes, insurance, management fees, maintenance, and reserves✓ Correct
CDebt service, vacancy allowances, and income taxes
DOnly property taxes and insurance
Explanation
Operating expenses include property taxes, insurance, property management fees, maintenance and repairs, utilities, landscaping, and reserves for replacements. Mortgage debt service, depreciation, and income taxes are NOT operating expenses in the income approach.
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