Property Valuation
In South Carolina, the 'income multiplier' method is distinguished from the 'capitalization rate' method in that:
AThey are identical methods
BGIM uses gross income (before expenses); cap rate uses NOI (after expenses)✓ Correct
CCap rate uses gross income; GIM uses NOI
DGIM is used only for residential; cap rate only for commercial
Explanation
GIM/GRM uses gross income (before deducting operating expenses), while direct capitalization uses NOI (after deducting operating expenses). Cap rate analysis is more precise because it accounts for operating expenses.
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