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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A5.
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