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?
A$300,000
B$285,000✓ Correct
C$250,000
D$270,000
Explanation
Gross Potential Income = 10 × $2,500 × 12 = $300,000. Vacancy loss = $300,000 × 5% = $15,000.
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