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CABARRUS COUNTY 2012 APPRAISAL MANUAL <br />MONTHLY GROSS INCOME MULTIPLIER APPLICATION <br />Typical sale price for properties comparable to the subject property $150,000 <br />Typical gross monthly income for properties comparable to the subject parcel $200 <br />Gross Income Multiplier (GIM) 750 <br />(Sale /Income) <br />Subject parcel gross monthly income $225 <br />Estimated Value (GIM x Income) $168,750 <br />ANNUAL GROSS INCOME MULTIPLIER APPLICATION <br />Typical comparable sale price $150,000 <br />Typical comparable gross annual income $2,400 <br />Gross Income Multiplier (GIM) 62.5 <br />Subject parcel gross annual income $2,700 <br />Estimated Value $168,750 <br />Care must be exercised in the use of gross income multiplier. This method is only applicable where there is a high degree of <br />comparability of properties sold in the market to the property being appraised. There must also be a sufficient number of <br />qualified sales of comparable properties since a sound multiplier cannot be determined from only one or two sales. <br />OVERALL RATE <br />This is the most applicable method to use in Revaluation Projects. The Overall Rate is the ratio of NOI to present worth of the <br />property. Overall rates are expressed as an annual percentage rate and are most effective when derived directly from market <br />sales. <br />GIVEN - Gross Annual Income <br />= $30,000 <br />Vacancy /Rent Loss <br />= 5% <br />Expenses <br />= 30% <br />OVERALL RATE FROM MARKET <br />= 10% <br />Gross Annual Income <br />$30,000 <br />Less Vacancy /Rent Loss <br />-$1,500 <br />Less Expenses <br />-$8,550 <br />Net Annual Income <br />$19,950 <br />Divided by Overall Rate <br />.10 <br />Total Present Value <br />Cabarrus County — 2012 Revaluation <br />$199,500 <br />INCOME PROPERTY VALUATION 8- 12 <br />05/24/01 <br />Attachment number 11 <br />G -3 Page 415 <br />