(Solved): You are an investor and need to know the property in which you are investing will be profitable. Y ...

You are an investor and need to know the property in which you are investing will be profitable. You have a complete understanding of the Income Approach to Value. What formula do you use to figure the cap rate? The buyer wants a cap rate of 7%. Your Gross Expenses are 25%. Currently, the property's Gross Rent is $70,000. What is the most your buyer is willing to invest? Why is the income to value approach used, if it is the best approach?