Real Estate Math
A property produces annual gross rents of $86,400 with a 5% vacancy. Operating expenses are 35% of EGI. At a 7.5% cap rate, what is the value?
A$53,352✓ Correct
B$700,000
C$712,800
D$600,000
Explanation
EGI = $86,400 × 0.95 = $82,080.
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