Property Management
An Indiana apartment complex has 100 units at $900/month average rent with a 5% vacancy. What is the effective gross income (EGI) per year?
A$900,000
B$1,026,000✓ Correct
C$1,080,000
D$1,140,000
Explanation
PGI = 100 × $900 × 12 = $1,080,000. EGI = PGI × (1 − vacancy) = $1,080,000 × 0.
People Also Study
Related Indiana Questions
- A real estate broker in Indiana pays $2,400/month in office rent. This annual expense must be covered by commissions. If the average commission is $9,000 per transaction, how many transactions per year just cover rent?Real Estate Math
- An Indiana property has a potential annual gross income of $144,000. With a 5% vacancy rate, what is the effective gross income?Real Estate Math
- An Indiana property's potential gross income is $96,000 per year. If 8% vacancy is expected and operating expenses are $35,000, what is the NOI?Real Estate Math
- A 6-unit apartment building in Muncie rents for $750/unit/month. The expenses are 40% of gross income. What is the annual NOI?Real Estate Math
- Income multiplier methods in Indiana appraisal include the GRM (Gross Rent Multiplier) and the GIM (Gross Income Multiplier). The key difference is:Property Valuation
- An Indiana apartment complex's net operating income is $185,000. If the debt service is $140,000, what is the annual cash flow before taxes?Property Management
- Indiana's Gross Income Tax on real property sales (FIRPTA equivalent for Indiana) generally requires:Finance
- An Indiana apartment complex's policy of requiring all applicants to provide Social Security numbers may have fair housing implications if it:Fair Housing
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Study This Topic
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →