Income Property Valuation
Finance Finance Ops Data Analyst Real Estate
The prompt
Calculate income-based valuation for a rental property using multiple approaches.
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Steps: 1) Calculate GRI from rent roll 2) Apply vacancy factor to get EGI 3) Deduct expenses for NOI 4) Calculate property value using cap rate approach 5) Calculate cash-on-cash return 6) Calculate DSCR 7) Project 5-year cash flows
Output: Income table, value conclusions, return metrics, investment summary. Why this works
Income approach essential for investment decisions. Multiple metrics provide comprehensive picture.
Risks & review
Underestimated expenses inflate NOI. Verify with actual statements and use market-based cap rates.