Last Updated: July 11, 2025
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Overview
This module delivers risk-aware valuation of properties based on projected income streams, capitalization rates, and cash flow forecasts. It assesses income potential to determine asset value under varying market conditions.
The RISI Framework Breakdown for Income Approach Valuation Modeling
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional income valuation analyst. |
| I | Insight | Analyzes projected income, vacancy rates, and capitalization metrics. |
| S | Strategy | Simulates valuation adjustments based on income forecasts and market risk factors. |
| I | Impact | Provides actionable guidance on income-based valuation and investment decision-making. |
How to Use the Income Approach Valuation Modeling Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target property or market:
What to enter for [TARGET]:
A brief summary of the property or market context, for example:
- “A multi-tenant office building with stable rental income and forecasted lease renewals.”
- Or, “An industrial property with projected cash flows and expected vacancy rates.”
- Or keep it generic: “A commercial real estate market with diversified income streams.”
- Role Prompt:
Activate ProValuations Mode for Real Estate Institutional Level Analysis - Income Projection Prompt:
Summarize projected income streams, vacancy assumptions, and capitalization rates for [TARGET]. Limit output to one paragraph. - Valuation Adjustment Prompt:
Analyze valuation sensitivity to income forecasts and market risk factors in [TARGET]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate institutional valuation adjustments based on income approach metrics for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize investment implications from income approach valuation. Provide one clear, actionable paragraph grounded in institutional behavior.
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