Real Estate Math

An Oklahoma apartment building with 20 units each renting for $850/month has an effective gross income of $190,800 (after 6% vacancy). What is the monthly gross potential income?

A$190,800
B$17,000✓ Correct
C$203,404
D$204,000

Explanation

Gross Potential Income = 20 units × $850/month × 12 months = $204,000/year (or $17,000/month). Effective Gross Income = $204,000 × (1 − 0.

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