Real Estate Math

A Nebraska investor purchases a 6-unit building for $480,000. Each unit rents for $850/month with 4% vacancy. Annual operating expenses are $28,000. After 5 years, the building appreciates 15%. What is the new value?

A$552,000✓ Correct
B$540,000
C$544,000
D$560,000

Explanation

New value = $480,000 × 1.15 = $552,000.

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