What is the Potential Gross income

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Reference no: EM132562435

Question - Given the following:

Number of Units 125

Operating Expenses $800,000

Vacancy Rate 5%

Collection Loss 2%

Monthly Rent $1,000

Debt Service $360,000

Required - Calculate on an Annual Basis:

a. What is the Potential Gross income (PGI)?

b. What is the Effective Gross Income (EGI)?

c. What is the Net Operating Income (NOI)?

d. What is the Before Tax Cash Flow (BTCF)?

e. Utilizing a capitalization rate of 9.5%, what is the estimated value of the property?

Reference no: EM132562435

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