20. A small apartment property is estimated to have potential gross income of $25,000. Vacancy
and collection losses are expected to average 5 percent over the life of the property. Operating
expenses are expected to average about 30 percent of effective gross income. An overall
capitalization rate of 12 percent is derived from market transactions of similar properties. What
is your estimate of the property's market value?
21. A house cost $89,500 when new four years ago. A 50 year useful life was assigned when it was
new. What is the depreciated value?
b. $ 8,950.
c. $ 7,160.
22. Three houses recently sold with the following amenities:
I. $112,500.00, 3br/2ba, good location, pool, garage
II. $ 96,500.00, 3br/2ba, fair location, pool, carport
m. $100,000.00, 3br/2ba, good location, carport
If a good location adds $10,000.00 and a garage adds $6,000.00 what would be the value of the
a. $ 6,000.00
b. $ 6,500.00