Real Estate Math
A Florida investor is analyzing an apartment building with the following data: 10 units at $800/month rent, 5% vacancy, $18,000 annual operating expenses, and the investor requires a 7% cap rate. What is the investor's maximum offer price?
A$1,028,571
B$1,045,714✓ Correct
C$1,114,286
D$771,429
Explanation
Annual PGI = 10 × $800 × 12 = $96,000. EGI = $96,000 × (1 − 0.
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