Given the following information, calculate the effective gross income multiplier. Sale price: $950,000, Potential Gross Income: $250,000, Vacancy and Collection Losses: 15%, and Miscellaneous Income: $50,000.
A) 0.36
B) 0.30
C) 2.8
D) 3.6

Question

Quizplus · Accepted Answer

The effective gross income is calculated as Potential Gross Income minus Vacancy and Collection Losses plus Miscellaneous Income: $250,000 - (15% of $250,000) + $50,000 = $262,500. The effective gross income multiplier is the Sale Price divided by the Effective Gross Income: $950,000 / $262,500 = 3.6.

Given the Following Information, Calculate the Effective Gross Income Multiplier