Real Estate Math
A 6-unit apartment building has a gross potential income of $5,400/month. If vacancy is 6%, what is the annual effective gross income?
A$60,912✓ Correct
B$64,800
C$59,496
D$61,560
Explanation
Annual GPI = $5,400 × 12 = $64,800. Vacancy = $64,800 × 6% = $3,888. EGI = $64,800 − $3,888 = $60,912.
Related Alabama Real Estate Math Questions
- An Alabama property appreciated 15% in one year. If it is now worth $460,000, what was the original value?
- Transfer taxes in Alabama are $0.50 per $500 of the sale price. What is the transfer tax on a $275,000 sale?
- An investor buys a property for $425,000 and sells it 3 years later for $510,000. What is the percentage gain?
- A rectangular lot measures 200 feet by 150 feet. What is the lot's area in acres? (1 acre = 43,560 sq ft)
- A salesperson earns 55% of the commission paid to their broker. If the broker received $9,750 on a sale, how much does the salesperson earn?
- A seller's net after a 6% commission and $4,500 in closing costs is $230,000. What did the property sell for?
- A property has gross potential income of $108,000 per year. Vacancy is 7%. Operating expenses are $35,000. What is the NOI?
- A lender charges 2 origination points plus $1,500 in other fees on a $225,000 loan. What are the total upfront loan costs?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →