What are the real estate triple net expenses

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Reference no: EM132042308

The Key Hotel in Lancaster, PA has 20 rooms and an average daily room rate of $99. Your investment group has agreed to purchase it for $100,000 per room. It is 70% occupied and the plan is for this to continue, and collection and bad debt expenses are 5%.

-What is annual revenue collected gross and net after collection costs?

The costs of turning each room, for housekeeping, laundry and cleaning is $25 per night. The distribution cost for paying a reservation system, front office, back of the house for maintenance and repair is $30 per night.

-What is annual income before fixed, or revenue less the payment of turn and distribution costs?

Real estate annual triple net expenses for property taxes are 1% of the property price. Insurance is 0.5% of the property price.

-What are the real estate triple net expenses?

Reference no: EM132042308

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