CHAPTER 5 Reconstructing the Operating History 100 PROBLEMS 1. Construct the effective gross income for Hammond Harmony Apartments, a 225-unit complex, all two-bedroom apartments of 1,000 square feet each Five complexes of similar accommodations and services are in the immediate neighborhood, all with only two-bedroom units. Kelvin Knights has 200 units, each with 1,000 square feet, renting for $800. There are 12 vacant units. Griggs Grove has 150 units, each with 975 square feet, renting for S790. Kennedie Village has 250 units, each with 990 square feet, renting for Esther's Eden has 100 units, each with 1,025 square feet, renting for Ginny Gallery has 300 units, each with 1,030 square feet, renting for There are 11 vacant units. $800. There are 16 vacant units $830. There are 7 vacant units $840. There are 18 vacancies. Hammond Harmony parking fees and washer/dryer rental income is $90.000 per year. 2. Construct the net income for Hammond Harmony Apartments if the manage- ment fee is 4.5 percent of EGI, annual salaries are $195,500, insurance is S68,200, supplies cost $22,400 per year, advertising/legal is $33,100, mainte- nance is $70,000, and repairs and replacements are $80,000 per year. Prop- erty taxes are projected to be $290,500 next year. Utilities average $9,075 per month