Real Estate Math
A Michigan rental property has a vacancy rate of 8% and potential gross income of $60,000/year. What is the effective gross income?
A$55,200✓ Correct
B$52,000
C$48,000
D$57,600
Explanation
Effective Gross Income = Potential Gross Income x (1 - vacancy rate). $60,000 x (1 - 0.
Related Michigan Real Estate Math Questions
- A Michigan investor buys a four-unit building for $480,000. Each unit rents for $900/month. What is the gross rent multiplier (monthly basis)?
- A Michigan agent sells a $190,000 home and earns a 3% commission. The agent is on a 65/35 split with the broker. How much does the agent receive?
- A Michigan rental property generates $2,400 per month in gross rent. Annual operating expenses are $14,400. What is the annual net operating income (NOI)?
- A buyer puts 10% down on a $275,000 home. The lender charges a 1% origination fee. How much is the origination fee?
- A Michigan property purchased for $180,000 sells for $225,000. What is the percentage increase in value?
- A Michigan property's market value is $220,000. The SEV is 50% of market value. With a 35-mill tax rate applied to the SEV, what are the annual property taxes?
- A 10,000 sq ft Michigan lot sells for $2.50 per square foot. What is the total price?
- A Michigan parcel is 2.5 acres. One acre equals 43,560 sq ft. How many square feet is the parcel?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →