Problem
The subject property has net income of $225,000. The typical mortgage for this class of property is 7.0% interest per year with monthly payments, a 25 year amortization, and 70% loan to value ratio. The mortgage constant (RM) is 0.084814. The required equity dividend rate (RE) is 9.0%. Using the "band of investment" technique, what is the market value of the property rounded to the nearest $1,000.00?