Ms. Moore owns a 16-unit apartment complex. The market rent…

Ms. Moore owns a 16-unit apartment complex. The market rent on each unit is $500 per month. It is expected that, on average, two of the units will be vacant for six months each year and an additional $250 per year will be lost due to uncollected rent. The annual operating expenses are estimated to be 39 percent of EGI. Capital expenditures for items such as carpeting, appliances, roofing and resurfacing the parking area are estimated to be $3,400 annually. What is the expected annual net operating income of the property? Assume an above-line treatment of capital expenditures.

You have been presented two opportunities: A payment of $7,5…

You have been presented two opportunities: A payment of $7,500 cash today or a payment of $10,500 cash in 5 years. Assume you could invest any payment you receive today in an account that will pay 8% interest, compounded monthly, at the end of each month. Given that you want to take the opportunity that will result in the highest benefit, you would choose

Suppose the effective gross income of an income property is…

Suppose the effective gross income of an income property is $130,875.  Vacancy and collection losses are 5% and the property’s potential gross income is $132,500. The property’s NOI is $78,525 and operating expenses are $52,350. What is the dollar amount of the miscellaneous income?