Real Estate Math
A property manager manages 40 units at $950/month average rent. The vacancy rate is 7.5%. What is the effective gross monthly income?
A$38,000
B$35,150✓ Correct
C$29,878
D$37,050
Explanation
Potential Gross Income = 40 × $950 = $38,000/month. Effective Gross Income = $38,000 × (1 - 0.075) = $38,000 × 0.925 = $35,150.
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