Income approach

Description

Income approach
guillermo triana
Mind Map by guillermo triana, updated more than 1 year ago
guillermo triana
Created by guillermo triana about 6 years ago
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Resource summary

Income approach
  1. Aplication
    1. calculate the market value of properties that earn or could earn income
    2. Utility
      1. In the process of estimating the non-commercial value of a property
      2. Estimating the potetial gross income for a property (PGI)
        1. Rental income
          1. No rental income
              1. analyze
                1. The market
                  1. estimate the income
                2. Estimating vacancies and collection losses
                  1. Income varies
                    1. Vacancy rate
                      1. collection losses
                    2. Estimating effective gross income (EGI)
                      1. difference between potential gross income and losses due to vacancy rate
                      2. Estimating operating expenses rate (OpEx)
                        1. variable costs
                            1. Fixed costs
                              1. Estimating net operatin income (NOI)
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