Property Valuation
A Florida strip mall has five tenants paying annual rents ranging from $18,000 to $30,000. The total annual gross income is $120,000. Vacancy and collection loss is estimated at 8%. What is the effective gross income?
A$96,000
B$110,400✓ Correct
C$120,000
D$129,600
Explanation
Effective Gross Income (EGI) = Gross Income - Vacancy and Collection Loss = $120,000 - ($120,000 × 8%) = $120,000 - $9,600 = $110,400.
Related Florida Property Valuation Questions
- A Florida appraiser is asked for an 'as-completed' value. This means:
- The 'principle of conformity' in Florida real estate states that value is maximized when:
- In Florida, the county 'property appraiser' (not to be confused with a real estate appraiser) is responsible for:
- A Florida appraiser is determining the cost approach value for a 10-year-old building with a total economic life of 50 years. The accrued depreciation percentage is:
- The 'gross rent multiplier' (GRM) is calculated by:
- The principle of 'substitution' in real estate appraisal states that:
- In Florida, the 'Save Our Homes' (SOH) cap limits annual increases in the assessed value of a homestead property to:
- When a Florida appraiser makes a 'paired sales analysis,' they are:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →