In: Finance
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.