Question

For smaller income-producing properties, appraisers may use the ratio of a property's selling price to its effective gross income. This is an example of a gross income multiplier. going-in cap rate. going-out cap rate. net operating income.

Answer 1

The correct answer is gross income multiplier.

Step-by-step explanation:

Gross income multiplier is the figure used as a multiplier of the annual gross income of a property to produce an estimate of the value of the property. Number used to estimate the Value of a Property. Gross property income is multiplied by this figure.