The Income Approach: Gross Rent Multiplier & Cap Rate
This lesson is part of the course
In this lesson
You extract a gross rent multiplier and a cap rate from four rented and sold homes, then value the subject with each method.
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Lessons in this course
- Price per Square Foot & Comparable Screening Locked
- The Sales Comparison Grid: Line Adjustments for Size, Bedrooms, Garage & Condition Locked
- Market-Conditions (Time) Adjustments: A Monthly Rate from a Paired Sale Locked
- Net & Gross Adjustment Percentages: Flagging Weak Comparables Locked
- Reconciliation: Weighting the Comps into One Value Locked
- The Cost Approach: Replacement Cost − Depreciation + Land Locked
- The Income Approach: Gross Rent Multiplier & Cap Rate Locked
- Final Reconciliation, Value Range & Report Summary (with a Chart) Locked