Real Estate Principles 3rd Edition by David Ling,Wayne Archer

تمرين 10

Use the following information to answer questions 1-3.
You are considering the purchase of an office building for $1.5 million today. Your expectations include the following: first- year potential gross income of $340,000; vacancy and collection losses equal to 15 percent of potential gross income; operating expenses equal to 40 percent of effective gross income; and capital expenditures equal 5 percent of EGI.
What is estimated effective gross income ( EGI ) for the first year of operations