Question
You own an apartment building with 100 units and are having trouble renting the units. You are trying to decide between Option A and Option
You own an apartment building with 100 units and are having trouble renting the units. You are trying to decide between Option A and Option B. Which is the better financial option and which option would you pick? Be sure to show your work in comparing the two options for net income. Net rental income=gross income less vacancy.
Option A: Rent the apartment at $2,500 per month with one month free and a dishwasher upgrade that costs $500 and achieve 100% occupancy.
Option B: Rent the apartment at $2,600 with no free rent and no dishwasher upgrade and achieve 85% occupancy
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