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Assuming an income producing real estate investment with annual potential gross rental income of $500,000 and 5% vacancy rate and total operating expenses of $275,000.

Assuming an income producing real estate investment with annual potential gross rental income of $500,000 and 5% vacancy rate and total operating expenses of $275,000.

1.) What is the annual effective income?

2.) What is the net operating income?

3.) Using a 10% capitalization rate, what is the value of the property?

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