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Question
Adjustments to NOI: Vacancy Loss
Marvin Gardens a 200 unit B grade apartment complex in Scottsdale Arizona is currently 97% occupied and has Rent Revenue of $2,328,000 per year. Net Operating Income for the period is $1,500,000. Next year the propertys rents will not increase, expenses will remain constant. Vacancy Loss will be 5% of Gross Potential Rent. Estimate the Gross Potential Rent, Vacancy Loss and NOI for next year.
Answer
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