On March 1, an investor bought a 10-unit apartment building for $360,000. The investor paid$72,000 in cash and obtained a 30-year mortgage in the amount of $288,000. A review of theaccounts over the preceding two years revealed that vacancy and collection losses were stableat 4% Potential gross income for the property is $70,400 and the operating expenses are$12,770. Including reserve for replacements of $2,812 Mortgage payments are $2,742.71.Calculate the net operating income.a. $49,259b. $52,002c. $54,814d. $67,584Correct Answer

Vacancy and Collection losses amount= Potential Gross income x Vacancy and Collection…

Answered: On March 1, an investor bought a…

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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