Land Residual Technique [3142]

 Home  Previous  Next

Net operating income is $50,000.  The building capitalization rate is 12% and the land capitalization rate is 10%.  The value of the building is $300,000.  Using the land residual technique, what is the value of the property?

 

 

B

L

T

I

$36,000

$14,000

$50,000

R

12.0%

10.0%

 

V

$300,000

$140,000

$440,000

Georgia Appraiser Home Page | Reload