Property Valuation
In South Carolina, the 'band of investment' method is used in appraisal to:
ACalculate the gross rent multiplier
BDerive a capitalization rate based on the weighted average return required by debt and equity investors✓ Correct
CDetermine the band of comparable sales
DCalculate the reproduction cost of improvements
Explanation
The band of investment technique derives an overall capitalization rate by weighting the mortgage constant (debt component) and the equity capitalization rate proportionally by their contribution to the total investment. It reflects the actual financing mix of investment properties.
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