Build a first-year Net Operating Income (NOI) for a residential building using the assumptions below and include a column for PER UNIT income/expenses?

How much would you pay for the building? Which criteria are you using?

 

Transcribed Image Text:

Total Number of Units Percentage of One Bedrooms Percentage of Two Bedrooms Rent for One Bedroom Rent for Two Bedroom Vacancy Rate as a Percent Gross Income Management Fee as a Percent of Net Rental Income* Real Estate Expenses as a Percent of Net Rental Income Operating Expenses Per Unit *Net Rental Income = Gross Income Less Vacancy 300 60% 40% $900 $1,100 5% 3% 30% $5,000 Total Number of Units Percentage of One Bedrooms Percentage of Two Bedrooms Rent for One Bedroom Rent for Two Bedroom Vacancy Rate as a Percent Gross Income Management Fee as a Percent of Net Rental Income* Real Estate Expenses as a Percent of Net Rental Income Operating Expenses Per Unit *Net Rental Income = Gross Income Less Vacancy 300 60% 40% $900 $1,100 5% 3% 30% $5,000

Answer rating: 100% (QA)

To calculate the Net Operating Income NOI for the residential building we need to start with the gro... View the full answer