Income Approach Basics Skills Tests

Income Approach Basics — Beginner

Foundations of the income approach: potential and effective gross income, vacancy, operating expenses, net operating income (NOI), capitalization rates, and direct capitalization. Practice-oriented valuation concepts; not legal or tax advice.

Income Approach Basics — Intermediate

Stabilized NOI, rent roll normalization, above- and below-market leases, expense recoveries, replacement reserves, cap rate selection, yield capitalization, and introductory DCF with reversion. Practice-oriented; not legal or tax advice.

Income Approach Basics — Advanced

Discount rate buildup, band of investment, levered vs unlevered returns, IRR and equity multiples, sensitivity analysis, ground leases, partial interests, and reconciling income conclusions with other approaches. Professional valuation practice; not legal or tax advice.