An 8-plex rents for $575 per unit, but has 3 units vacant. What is the Gross Potential Income of the building?

Prepare for the Montana Property Management Exam. Discover comprehensive flashcards and multiple-choice questions, with hints and detailed explanations. Excel in your exam journey!

To determine the Gross Potential Income (GPI) of an 8-plex, you first need to calculate the total potential income if all units were rented out, regardless of vacancies.

In this case, there are 8 units, and each unit rents for $575. The GPI can be calculated by multiplying the number of units by the rent per unit:

8 units × $575 per unit = $4,600.

This figure represents the maximum income the property could generate if all units were occupied, thereby making it the Gross Potential Income. The presence of 3 vacant units does not affect the calculation of GPI; it is simply the total potential income based on full occupancy.

Therefore, the correct answer reflects this calculation of potential rental income from the total number of units at the given rental price.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy