Real Estate Math
A Nebraska property with 3 rental units each renting for $950/month has a 5% vacancy rate. What is the effective gross income annually?
A$32,490✓ Correct
B$34,200
C$36,000
D$30,780
Explanation
Gross potential income = 3 × $950 × 12 = $34,200. Vacancy loss = $34,200 × 5% = $1,710. EGI = $34,200 − $1,710 = $32,490.
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