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Effective Gross Income (Real Estate)

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Given the following information, what is the effective gross income?
Property: 4 office units
Contract rents per unit: $2500 per month
Vacancy and collection losses: 15%
Operating expenses: 35%
CAPEX: 10%

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Solution Summary

The effective gross income is calculated for office rental units.

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Potential Gross Income=4 office units * $2,500 per month per unit=$10,000
Minus: Vacancy and collection losses (15%)=.15 * ...

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