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Instead, you can do the appraisal without this

Posted in realty in the U.S. on March 4th, 2010


Instead, you can do the appraisal without this income included, then add back the replacement cost of the machines (probably much less than $75,000). Also, there are just plain different expenses for different properties, especially when some include utilities in the rent, for example. That would mean you would estimate the value at $187,000 more (.08 cap rate). That is why your realestate math education needs to start with the how to use a capitalization rate, or “cap [...] Now, to arrive at an estimate of value, you simply apply the capitalization rate to this figure.
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