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Income Approach – Gross Rent Multiplier (GRM)
The subject property you are appraising is a triplex with 3 identical units renting for $1,450/month each. The recent triplex comparables you have found are:
1) Sale price: $616,500. Monthly rent is $1,500/unit for all 3 units
2) Sale price: $566,000. Monthly rents are $1,400 for Unit 1, $1,475 for Unit 2, & $1,375 for Unit 3
3) Sale price: $602,000. Monthly rents are $1,475 for Unit 1, $1,500 for Unit 2, & $1,455 for Unit 3
All rents are considered at current market levels. Using a Gross Rent Multiplier (GRM), estimate the value of the subject property.

Income Approach – Capitalization Rate

An apartment building has 26 identical units with a market rent of $1,100 per month. Historic vacancies and bad debt loss have been 8%. Annual operating expenses are estimated to be $137,300. Cap rates for similarly sized apartment buildings is estimated to be 6.5%. With this information, estimate the value of the apartment building.