The subject property is recently renovated and will be fully occupied within thirty days due to overwhelming market demand. The subject property has twenty-five renovated apartments with market rents of $1,200 per unit, resulting in an annual gross income of $360,000. We have conservatively estimated the vacancy rate at 10%, indicating an effective gross annual income of $324,000. We have very conservatively estimated expenses at 35% of effective gross income, even though everything is fully renovated. The estimated annual net income is $210,600. We have applied a 7% capitalization rate on this investment-grade property to estimate the value at $3,000,000. Please note that the below-listed comparable sales support the subject property’s asking price. Additionally, the cost to build the new property would be more than $6,000,000, not counting the land, which serves as a barrier to competition from new development