Question
You are considering an investment in an apartment building in Montclair, NJ. The building has a total of 10 apartments; 6 one-bedroom units and 4
You are considering an investment in an apartment building in Montclair, NJ. The building has a total of 10 apartments; 6 one-bedroom units and 4 two-bedroom units. One-bedroom apartments for $1500/month, two-bedroom units for $2000/month.
1) What is the annual potential gross income for this property?
2) If the typical vacancy rate for this type of property in this area is 10% what is the effective gross income for this property?
3) If operating expenses are 65% of total operating income, what is NOI?
4) What is the estimated value of the apartment building based on a 6% capitalization rate?
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