Real Estate Math
An investor owns a 20-unit apartment complex. Average rent per unit is $950/month. The vacancy rate is 6%. Annual operating expenses are $78,000. At a cap rate of 8.5%, what is the property value?
A$1,410,588
B$1,282,353
C$1,603,765✓ Correct
D$1,490,000
Explanation
Gross Income = 20 × $950 × 12 = $228,000. EGI = $228,000 × (1 − 0.
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