Allen Benedict is thinking of buying an apartment complex that
is offered for sale by the firm of Getz and Fowler. The price,
$2.25 million, equals the property's market value. The following
statement of income and expense is presented for Benedict's
consideration:
The St. George Apartments Prior Year's Operating Results,
Presented by Gertz and Fowler, Brokers
30units, all 2-bedroom apartments, $975/month
$351,000
water & dryer rentals
10,000
gross annual income
$361,000
Less operating expenses:
Manager's salary
$10,000
Maintenance staff (1...