Gross yearly rents are $400 X 12 apartments X 12 months = $57,600
Expenses are:
Management fee = $57,600 X 10% = $5,760
Pest control = $150 X 12 months = $1,800
Maintenance = $200 X 12 months = $2,400
Taxes & insurance= $300 X 12 months = $3,600
Total expenses = $13,560
Net yearly income = $57,600 - $13,560 = $44,040
$44,040
10% X Value
= $44,040 ÷ 10% = $440,400 (Value)
a) $440,400
b) $50,000
c) $57,600
d) $13,560"
