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  2. Fair market value: What it is, how it’s calculated - AOL

    www.aol.com/finance/fair-market-value-calculated...

    A home's fair market value is, in a nutshell, the price that a buyer would pay a seller in an open market. Many factors go into determining it, including location, size, age, condition and the ...

  3. Property investment calculator - Wikipedia

    en.wikipedia.org/wiki/Property_investment_calculator

    Gross rent multiplier – The ratio between a rental property's gross scheduled income and its market value. Net cash flows – The amount of cash to expect to receive after expenses. Net present value of future cash flows – The sum of net future cash flows discounted back to the present value using the time value of money to understand what ...

  4. Gross rent multiplier - Wikipedia

    en.wikipedia.org/wiki/Gross_Rent_Multiplier

    A 100 GRM (monthly rents) = 8.33 GRM (annual rents). An 8.33 GRM calculated on annual rents suggests the gross rent will pay for the property in 8.33 years. The common measure of rental real estate value based on net return rather than gross rental income is the capitalization rate (or cap rate). In contrast to the GRM, the cap rate is not a ...

  5. Accounting for leases in the United States - Wikipedia

    en.wikipedia.org/wiki/Accounting_for_leases_in...

    A bargain purchase option is given to the lessee. This is an option that allows the lessee, upon termination of the lease, to purchase the leased asset at a price significantly lower than the expected fair market value of the asset. The life of the lease is equal to or greater than 75% of the economic life of the asset.

  6. What Is Depreciation? Importance and Calculation Methods ...

    www.aol.com/finance/depreciation-importance...

    For example, if you purchase a rental property for $500,000, you can depreciate the cost of the physical property. If the value of the land is $50,000, you can depreciate the remaining $450,000.

  7. I Inherited Property. How Can I Tell Its Fair Market Value? - AOL

    www.aol.com/inherited-property-tell-fair-market...

    Inheriting property, whether expected or unexpected, can raise some questions about what to do with it and what it's worth. Specifically, you'll need to know the property's fair market value (FMV ...