All 4 units are included in the calculation of the Estimated Rental Value (ERV) as follows:
Apartment Rilas – 2Bed + 2 Bath + Private Pool @ €600 per week
Apartment Rambla – 1Bed + 1 Bath + *Communal Pool* @ €300 per week
Apartment Castallico – 1Bed + 1 Bath + *Communal Pool*@ €300 per week
Casita Rambla – 1Bed + 1 Bath + *Communal Pool* @ €300 per week
Total Rental, per week occupancy €1500
Actual Occupancy rate for 2010 31%
Conservative Estimate of Future Occupancy rate 50%
Estimated Rental Value (ERV) = 26weeks x €1500 €39,000
Reasonable Gross Yield 10% (0.1)
Property Value ( €39,000/0.1) €390,000
Investment returned in 10 years
Allowance for construction of *Communal Pool* € 10,000
FINAL ASKING PRICE €380,000