Property Valuation
In Hawaii, what is the 'income approach' formula for commercial real estate?
AA. Value = NOI × GRM
BB. Value = NOI / Cap Rate✓ Correct
CC. Value = Sales Price × OAR
DD. Value = EGI - Operating Expenses
Explanation
The income capitalization approach: Value = Net Operating Income / Overall Capitalization Rate (cap rate). This directly converts income into value.
Related Hawaii Property Valuation Questions
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