Question: What is the potential gross rent if you have 300 apartments and they have the following rental rates:

100 1 bedroom units - rental amount is $950 per unit per month

100 2 bedroom units - rental amount is $1,150 per unit per month

50 3 bedroom units - rental amount is $1,400 per unit per month

50 4 bedroom units - rental amount is $2,200 per unit per month

Answer- Calculation of gross rent:

Gross rent is:

=(100*$950)+(100*$1150)+(50*$1400)+(50*$2200)

=$390,000

1.How much is the lost revenue if you apply a 10% vacancy to your previous answer?

2.If you add $300,000 to the potential gross rent minus vacancy you calculated in the previous two questions, what is the Effective gross income?