Part1) Bob's Apartment Building has 100 units that rent for $1,110 per month each. What is...

Part1) Bob's Apartment Building has 100 units that rent for $1,110 per month each. What is the Gross Potential Income for Bob's Apartment Building?
Part2) Bob's Apartment Building has gross potential income of $1,000,000. The expected vacancy rate is 13%. Collection losses are 5% (after allowing for vacancies). Incidental income is $50,000 per year. What is the Effective Gross Income for Bob's Apartment Building?
Part3) Bob's Apartment Building has effective gross income of $500,000. Operating expenses are 38% of revenue. What is the net operating income for Bob's Apartment Building?
Part4) Bob's Apartment Building has net operating income of $114,561. The appropriate cap rate is 5.35%. What is the value of Bob's Apartment Building? Round your answer to the nearest dollar. Don't enter the dollar sign.

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Expert Solution

jeff jeffy answered 2 years ago

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