Problemyou estimate that the value of a single family home, Ask an Expert

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Problem:

You estimate that the value of a single family home is $700,000. However, local zoning regulations would permit a 5 unit rental housing structure to be built. There is demand for rentals in the area.

The estimated value of the rental structure is $1,100,000, but the construction costs, including demolition of the existing home, is estimated at $500,000.

Required:

Question: What is the property's highest and best use?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162878

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