Question

g. What is the net income ratio of a property where the potential gross income is $110,000; the vacancy and collection losses are estimated at $10,000; and the operating expenses are estimated at $30,000

Answer 1

The net income ratio of the property is $ 70,000.

To determine what is the net income ratio of a property where the potential gross income is $ 110,000; the vacancy and collection losses are estimated at $ 10,000; and the operating expenses are estimated at $ 30,000, the following calculation should be performed:

• 110,000 - 10,000 - 30,000 = X
• 100,000 - 30,000 = X
• 70,000 = X

Therefore, the net income ratio of the property is $ 70,000.

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