Real Estate Math
A 5-unit Nebraska apartment building has all units renting for $800/month with a 6% vacancy rate. What is the annual effective gross income?
A$45,120✓ Correct
B$48,000
C$44,800
D$42,240
Explanation
Gross potential income = 5 × $800 × 12 = $48,000. Vacancy = $48,000 × 6% = $2,880. EGI = $48,000 − $2,880 = $45,120.
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