Property Valuation
When a NC property produces income, its 'net income multiplier' (NIM) is calculated as:
ASale price divided by gross monthly income
BSale price divided by net annual income (NOI)✓ Correct
CNOI divided by sale price
DGross income divided by expenses
Explanation
Net Income Multiplier = Sale Price / Net Operating Income (NOI). It is the reciprocal of the cap rate and shows how many times the NOI the investor is paying.
Related North Carolina Property Valuation Questions
- In the sales comparison approach, a positive adjustment to a comparable sale means:
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- An appraiser in North Carolina using the income approach would NOT include which of the following in operating expenses?
- A property in Raleigh, NC has a net operating income of $48,000 and the market capitalization rate is 8%. Its estimated value using the income approach is:
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