Real Estate Math
A Louisiana property has potential gross income of $72,000, a 5% vacancy rate, and operating expenses of $28,000. A 9% cap rate is used. What is the estimated value?
A$448,889✓ Correct
B$488,889
C$400,000
D$466,667
Explanation
EGI = $72,000 × (1 − 0.05) = $68,400.
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