A 24 unit apartment complex has gross potential rent of $228,000. Assume that the vacancy rate is 5%. Other income is $10,000 - it is not affected by the vacancy rate. Expenses are as follows: Mgmt fee: 6% of total revenues Insurance & Taxes: $49,796 Salaries & Personnel: $55,592 Maintenance & Repairs: $31,476 Utilities: $21,680 What is the Net Operating Income for the property? Note: All numbers are on an annual basis.
A 24 unit apartment complex has gross potential rent of $228,000. Assume that the vacancy rate is 5%. Other income is $10,000 - it is not affected by the vacancy rate. Expenses are as follows: Mgmt fee: 6% of total revenues Insurance & Taxes: $49,796 Salaries & Personnel: $55,592 Maintenance & Repairs: $31,476 Utilities: $21,680 What is the Net Operating Income for the property? Note: All numbers are on an annual basis.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![A 24 unit apartment complex has gross
potential rent of $228,000. Assume that the
vacancy rate is 5%. Other income is $10,000 -
it is not affected by the vacancy rate.
Expenses are as follows:
Mgmt fee: 6% of total revenues
Insurance & Taxes: $49,796
Salaries & Personnel: $55,592
Maintenance & Repairs: $31,476
Utilities: $21,680
What is the Net Operating Income for the
property?
Note: All numbers are on an annual basis.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd780aa8-6d93-4452-98fa-16729750e0df%2F26f54ae3-20c5-43b4-8c94-c7fb5ee0eb23%2Fxy1fg3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A 24 unit apartment complex has gross
potential rent of $228,000. Assume that the
vacancy rate is 5%. Other income is $10,000 -
it is not affected by the vacancy rate.
Expenses are as follows:
Mgmt fee: 6% of total revenues
Insurance & Taxes: $49,796
Salaries & Personnel: $55,592
Maintenance & Repairs: $31,476
Utilities: $21,680
What is the Net Operating Income for the
property?
Note: All numbers are on an annual basis.
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