Property Valuation
The 'income multiplier approach' in South Dakota is a simplified valuation tool. An annual gross income multiplier (AGIM) divides the sale price by:
AMonthly gross rent
BAnnual gross rent✓ Correct
CAnnual net operating income
DAnnual debt service
Explanation
The Annual Gross Income Multiplier (AGIM) = Sale Price ÷ Annual Gross Rent. It provides a quick estimate of value based on gross income, without accounting for expenses.
Related South Dakota Property Valuation Questions
- In South Dakota, 'gross living area' (GLA) in residential appraisal typically includes:
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