Ayesha owns a rental property on main street but she is


Ayesha owns a rental property on Main street, but she is considering selling the property to another real estate investor. In preparation for negotiating a price, Ayesha wants to know the value of the property. The Net Operating Income (NOI) is the cash flow from real estate and the Cap Rate is the rate, where NOI is rental revenue less all expenses except loan servicing. The property has an NOI of Rs-12,000 per year. The local real estate market has a cap rate of 6%. What is a fair price for the property assuming that the building's life is 35 years?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Ayesha owns a rental property on main street but she is
Reference No:- TGS02685654

Expected delivery within 24 Hours