A buyer paid $800,000 for an investment property. the total annual income is $75,000; loss due to bad debt and vacancy is $5,000 a year; and expenses are $1,200 per month in addition to debt service of $2,700 per month. what is the capitalization rate for the property
Answer: Real estate appraisals are used by sellers, buyers, and their lenders. Sellers want to ensure that their sale price is not less than the property's worth.
