Given the Following Information, Calculate the Capitalization Rate for the Following

question 32

Multiple Choice

Given the following information, calculate the capitalization rate for the following apartment complex. Number of apartments: 15; Market Rent (per month) : $1,000; Vacancy and Collection Loss: 10% of potential gross income; Operating Expenses: 5% of effective gross income; Capital Expenditures: 10% of effective gross income; Acquisition Price: $1,710,000.

• A) 8.1%
• B) 9.0%
• C) 9.5%
• D) 10.5%

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Definitions:

Cool Compresses

A treatment method involving the application of a damp, cool cloth to a specific area of the body to reduce pain or swelling.

Evaporation

The process by which water or another liquid turns into vapor, moving from the liquid phase into the gaseous phase, often as part of the water cycle.

Anticipate Order

A concept likely related to predicting or preparing for tasks or commands in various contexts, though it's not a widely recognized key term in a specific academic or professional field.

Recheck Temperature

The process of measuring temperature again to ensure accuracy or monitor changes.