A building contains 50 units at which rent is estimated to be $22.50 per square foot per year. The average size of a single unit is 750 square feet. All tenants are expected to rent out parking and storage spaces for an additional $800 per unit per year. Vacancy and collection allowances are set to 4% of gross potential income. Total operating expenses for the year are expected to make up one quarter of the potential gross income. What is annual effective gross income for this building?

Answer rating: 100% (QA)

First lets calculate the potential gross income Potential Gross Income PGI Number of Units x ... View the full answer