Question

Given the following information, calculate the effective gross income: property: 4 office units, contract rents per unit: $2,750 per month; vacancy and collection losses: 18%; operating expenses: $41,000; capital expenditures: 11%.

Answer 1

Answer:

the effective gross income is $117,480

Explanation:

The computation of the effective gross income is shown below:

= Gross income - vacancy income

= ($2,750 × 4 units × $12) -  ($2,750 × 12 × 4 × 11%)

= $132,000 - $14,520

= $117,480

hence, the effective gross income is $117,480

The same is to be considered and relevant