What does the term capitalization mean in real estate? With which appraisal approach is it used? What is the basic capitalization formula?
a) The term capitalization in real estate refers to:
i) The Gross Rent Multiplier approach
ii) The Income Capitalization approach
iii) The Cost Approach
iv) The Sales Comparison Approach
b) It is used with:
i) Gross Rent Multiplier approach
ii) Income Capitalization approach
iii) Cost Approach
iv) Sales Comparison Approach
c) The basic capitalization formula is:
i) NOI / Property Value
ii) Property Value / NOI
iii) Property Value * Cap Rate
iv) NOI * Cap Rate