In making single-asset real estate investment decisions,the first pass often involves calculating a series of returns,ratios,and multipliers.Which of the following is often cited as a limitation associated with this type of analysis?

Question

Quizplus · Accepted Answer

Single-asset real estate investment decisions often involve calculating returns, ratios, and multipliers, but a limitation of this type of analysis is that it fails to incorporate cash flows beyond the first year of the analysis. This limitation can lead to inaccurate assessments of long-term investment viability.

In Making Single-Asset Real Estate Investment Decisions,the First Pass Often