Real Estate Math

A 6-unit building in Ogden has a vacancy rate of 10% and monthly rent of $900/unit. What is the annual EGI?

A$57,600
B$51,840
C$64,800
D$58,320✓ Correct

Explanation

Annual Potential Gross Income = 6 × $900 × 12 = $64,800. Vacancy loss = $64,800 × 10% = $6,480. EGI = $64,800 - $6,480 = $58,320.

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