On March 1, an investor bought a 10-unit apartment building for $360,000. The investor paid $72,000...

  

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On March 1, an investor bought a 10-unit apartment building for $360,000. The investor paid $72,000 in cash and obtained a 30-year mortgage in the amount of $288,000. A review of the accounts over the preceding two years revealed that vacancy and collection losses were stable at 4% Potential gross income for the property is $70,400 and the operating expenses are $12,770. Including reserve for replacements of $2,812 Mortgage payments are $2,742.71. Calculate the net operating income. a. $49,259 b. $52,002 c. $54,814 d. $67,584 Correct Answer On March 1, an investor bought a 10-unit apartment building for $360,000. The investor paid $72,000 in cash and obtained a 30-year mortgage in the amount of $288,000. A review of the accounts over the preceding two years revealed that vacancy and collection losses were stable at 4% Potential gross income for the property is $70,400 and the operating expenses are $12,770. Including reserve for replacements of $2,812 Mortgage payments are $2,742.71. Calculate the net operating income. a. $49,259 b. $52,002 c. $54,814 d. $67,584 Correct Answer

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The question is asking for the net operating income of a 10unit apartment building investment To cal... View the full answer