Real Estate Math
A West Virginia rental property has 5 units each renting at $750/month. At 90% occupancy, what is the annual effective gross income?
A$40,500✓ Correct
B$45,000
C$50,000
D$36,000
Explanation
Potential Gross Income = 5 units x $750/month x 12 months = $45,000. At 90% occupancy: EGI = $45,000 x 0.90 = $40,500.
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