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LIHTC Income and Expenses

Discussion in 'Commercial/Industrial Appraisals' started by MNRural, May 27, 2010.

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  1. MNRural

    MNRural Member

    0
    Oct 11, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Minnesota
    Does anyone know where to get published historical or surveyed income and expense data or ratios for tax credit apartments???

    My subject has a $10,000 Net Operating Income for a 24 unit building. Expenses are running at about 90% of Gross Potential Income. At a 9% cap rate, my 24 unit building is worth about $110,000 ($4,600 per unit).
     
  2. PropertyEconomics

    PropertyEconomics Elite Member

    1
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico

    Paul ... the net operating income sounds very low to me for a LIHTC property. Is there any other special financing that is applicable to this property (ie interest credit subsidy?), are there any kind of rental assistance programs associated with this property?
    Have you looked and can you tell me why the expenses are 90%? Are there major line items that result in a significant increase in expenses? Are the rents restricted and when I say restricted are real restrictions in place? Often times the differences in market rent and restricted rents in LIHTC properties are non existent.
    Also, what is the purpose of your assignment?

    If you need additional help let me know in a pm. I think I can tell you where to get the data you need depending on the answers to the above questions.

    PE
     
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