Real Estate Math
A Wyoming commercial property has a potential gross income of $200,000, a vacancy rate of 5%, and collection loss of 2%. What is the effective gross income?
A$184,000
B$186,000✓ Correct
C$190,000
D$194,000
Explanation
Vacancy and collection loss = $200,000 x (5% + 2%) = $200,000 x 7% = $14,000. EGI = $200,000 - $14,000 = $186,000. EGI represents the income a property is expected to generate after accounting for vacancy and collection losses.
Related Wyoming Real Estate Math Questions
- A Wyoming salesperson sells a property for $625,000 at a 6% total commission. The commission is split 50/50 between listing and selling brokers. The selling salesperson earns 70% of the selling brokerage's share. How much does the selling salesperson earn?
- A Wyoming property has monthly NOI of $3,500. At a 7.5% annual cap rate, what is the property value?
- A Wyoming salesperson earns a 2.5% commission on a $550,000 sale and splits 40% with the broker. How much does the salesperson keep?
- A Wyoming investor purchases a $500,000 property with a 30% down payment. What is the debt coverage ratio if NOI is $42,000 and annual debt service is $28,000?
- A Wyoming real estate transaction closes on July 10. The annual property tax of $3,600 has NOT been paid. Using a 365-day year, how much does the seller owe the buyer in property tax proration?
- A Wyoming investor needs a 12% return on investment. The projected annual NOI for a property is $54,000. What is the maximum price the investor should pay?
- A Wyoming property has potential gross income of $84,000 per year. The vacancy rate is 8%. What is the effective gross income?
- A Wyoming property manager charges 8% of gross rents for management. If monthly gross rents are $5,500, what is the annual management fee?
Practice More Wyoming Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wyoming Quiz →