Land Residual Technique [3143]

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The land capitalization rate is 9% and the building capitalization rate is 15%.  The net operating income is $45,000.  The value of the building is $200,000.  Using the land residual technique, what is the value of the property?

 

 

B

L

T

I

$30,000

$15,000

$45,000

R

15.0%

9.0%

 

V

$200,000

$166,667

$366,667

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