What is its operating expense ratio

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Reference no: EM131886302

Use the information to answer questions 23 and 24 below: Suppose an apartment complex sold with a cap rate of 10%. It sold with a Gross Income Multiplier of 5. No vacancies are expected. (Make up imaginary income statement to assist. This is a gift, take a deep breath.)

1. What is its operating expense ratio?

a) 5%

b) 50%

c) 25%

d) 75%

e) 15%

2. If the debt service for this property is equal to its operating expenses, what is the property’s break even ratio?

a) 10%

b) 100%

c) 50%

d) 150%

e) 30%

Reference no: EM131886302

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