Operating statement by zaaaa59

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									                                                 The Office

Sale Price:                                             $775,000
  RE taxes based on sale price                           $15,500
Current Assessment:                                     $600,000
  RE taxes based on current assessment:                  $12,000


Operating Income & Expenses:

                                                    As Submitted                        Recalculated
                                                     Current Year                    capitalization rate
  Gross Rents                                           $105,000
  Vacancy
  Effective Gross Income                                $105,000

  Operating Expenses
   Administrative                                           $500
   Management Fee                                             $0
   Repairs/Maintenance:                                  $10,000
   Utilities                                              $6,000
   Insurance                                              $2,500
   Other                                                    $200
   Replacement Reserves                                       $0
   Real Estate Taxes                                     $12,000
  Total Operating Expenses:                              $31,200

  Net Operating Income                                   $73,800

  Sale Price                                            $775,000

  Derived Capitalization Rate:                             9.52%



  The assessor reassesses properties at market each year.

  The assessor typically reflects management fees, reserves for replacements and vacancy
    in the income approach.

  Market level management fees are 5%, reserves for replacements are 2.5% and vacancy is 6%.

  Recalculate the dervied capitalization rate:
                                                 The Office

Sale Price:                                             $775,000
  RE taxes based on sale price                           $15,500
Current Assessment:                                     $600,000
  RE taxes based on current assessment:                  $12,000


Operating Income & Expenses:

                                                    As Submitted                        Recalculated
                                                     Current Year                    capitalization rate
  Gross Rents                                           $105,000                              $105,000
  Vacancy                                                                                       -$6,300
  Effective Gross Income                                $105,000                               $98,700

  Operating Expenses
   Administrative                                           $500                                  $500
   Management Fee                                             $0                                $4,935
   Repairs/Maintenance:                                  $10,000                               $10,000
   Utilities                                              $6,000                                $6,000
   Insurance                                              $2,500                                $2,500
   Other                                                    $200                                  $200
   Replacement Reserves                                       $0                                $2,468
   Real Estate Taxes                                     $12,000                               $15,500
  Total Operating Expenses:                              $31,200                               $42,103

  Net Operating Income                                   $73,800                               $56,598

  Sale Price                                            $775,000                             $775,000

  Derived Capitalization Rate:                             9.52%                                 7.30%



  The assessor reassesses properties at market each year.

  The assessor typically reflects management fees, reserves for replacements and vacancy
    in the income approach.

  Market level management fees are 5%, reserves for replacements are 2.5% and vacancy is 6%.

  Recalculate the dervied capitalization rate:

								
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