Real Estate Math
A 10-unit building has 2 vacant units. Annual gross potential income is $360,000. The actual collected income (EGI) is:
A$360,000
B$288,000✓ Correct
C$340,000
D$320,000
Explanation
Vacancy rate = 2/10 = 20%. EGI = $360,000 × (1 - 0.
People Also Study
Related New York Questions
- An investor purchases a 6-unit apartment building. Each unit rents for $1,500/month. The vacancy and credit loss rate is 5%. What is the effective gross income per year?Real Estate Math
- A NYC apartment building has 10 units each renting for $2,500/month. If the building has a 5% vacancy rate, what is the effective gross income (EGI) annually?Real Estate Math
- A Brooklyn three-family property has a potential gross income of $108,000, a 5% vacancy rate, and a 40% expense ratio. The NOI is:Property Valuation
- An upstate New York property has a gross potential income of $60,000, operating expenses of $22,000, and a 10% vacancy allowance. The cap rate is 8%. What is the estimated value?Real Estate Math
- A New York apartment building has 10 units, each renting for $2,200 per month. The vacancy rate is 5%. What is the effective gross income (EGI) on an annual basis?Real Estate Math
- A New York property has a net operating income of $120,000 and is capitalized at a 6% rate. Its indicated value using the income approach is:Property Valuation
- In New York, a commercial property's 'potential gross income' (PGI) represents:Property Valuation
- Under the federal Truth in Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to a New York borrower differs from the note rate because the APR:Finance
Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Study This Topic
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →