Question

You collect and average monthly rent of $913 per unit in a property with 13 units. You estimate vacancy to be 6.78%. What is your expected annual net rental income given these assumptions?

Answer 1

To calculate the expected annual net rental income, multiply the average monthly rent by the number of units and then adjust for the estimated vacancy percentage.

Step-by-step explanation:

To calculate the expected annual net rental income, we need to consider the average monthly rent, the number of units, and the estimated vacancy percentage. First, we calculate the total monthly rental income by multiplying the average monthly rent by the number of units: $913 * 13 = $11,869. Next, we calculate the annual rental income by multiplying the total monthly rental income by 12: $11,869 * 12 = $142,428. Finally, we calculate the expected annual net rental income by subtracting the expected vacancy percentage from 100% and multiplying it by the annual rental income: (100% - 6.78%) * $142,428 = $132,595.16.