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damariush567
20.03.2020 •
Business
Olivia is interested in purchasing a two-unit residential building as an investment. Appraiser Luke researches recent sales in the area and finds a similar though slightly nicer duplex in another neighborhood that just sold for $420,000 where each tenant pays $1,400/month. The two tenants in the building Olivia wants to buy each pay $1,200 per month. Using the gross monthly rent multiplier, what might be an acceptable offer for Olivia to make?
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Ответ:
The options are given below:
A. $420,000
B. $360,000
C. $180,000
D. $192,000
The correct option is B. $360,000
Explanation:
First, we will find the Gross Monthly Rent Multiplier thus:
Divide sales price of the apartment by the total monthly rent
= $420,000 / $2,800 = 150.
Then multiply the total monthly rent of the building Olivia wants to purchase by the Gross Monthly Rent Multiplier to find the value thus:
$2,400 x 150 = $360,000.
Olivia would be willing to pay $360,000 for the building.
Ответ:
approximately $360,000
Explanation:
to determine the gross monthly rent multiplier of a similar duplex, we divide the similar duplex's value by its monthly rent:
$420,000 / $1,400 = 300
Now we just multiply 300 by the expected monthly rent of the duplex Olivia wants to buy = $1,200 x 300 = $360,000
$360,000 is the approximate amount that Olivia should pay for this duplex
Ответ:
Lets Reduce:
21/7=3 so we know for every 3 in 18/21 we have one in x/7
This means 6/7=18/21
Check:
18/6=3
21/7=3