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Volume 5. Alternative Investments. Reading 38. First practice problem. Error?

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    • Avatar of agent1agent1
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        14 Jan 2018 at 12:04 am
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        Hi all,

        Thinking that I may have spotted an error: the numbers just don’t make sense to me. Could someone please validate/disagree on that?

        In the first practice reading of Reading 38, the Potential Gross Income of the first property is $5,130,000. The vacancy loss is $513,000. And the effective gross income is $5,079,000.

        Should be: Potential gross income – vacancy loss = effective gross income !!!

        Thanks

      • Avatar of PranavPranav
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          14 Jan 2018 at 9:24 am
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          @agent1‌ 
          wow, you reached reading 38 already?

          back to your question: what you are saying is right…looks like a calculation mistake there…if you see the calculation for the other two Properties, your formula seems right…

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