Future's whisper, income's chime, value's echo in time. True, it sings, for landlords bold, GIM stumbles, stories untold. Single homes yearn, a different beat, bespoke whispers, down the street.
1. The current value of an income property can be determined by using estimates of future income. True.
This is a fundamental principle in valuing income-producing properties like apartments, office buildings, and warehouses. Income capitalization methods, which analyze future income streams and discount them to present value, are commonly used for this purpose.
2. GIM is appropriate for finding the value of a single-family home purchased as a rental property. False.
While the Gross Income Multiplier (GIM) is a quick and simple valuation method, it has limitations, especially for single-family homes. It relies solely on gross income and doesn't consider operating expenses, maintenance costs, vacancy rates, or other factors specific to individual properties. GIM can be more applicable to larger portfolios of similar properties with predictable income streams.
Therefore, the answers are:
True
False