Building Residual Technique [3140]

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The land value is $80,000; the interest rate for the building is 12%; and the building capitalization rate is 17%.  The NOI is $37,000.  Using the building  residual technique, calculate the value of the property?

 

 

B

L

T

I

$27,400

$9,600

$37,000

R

17.0%

12.0%

 

V

$161,176

$80,000

$241,176


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