Effective Gross Income Multiplier [4008]

An apartment that recently sold for $500,000 has potential gross rent of $100,000.  Vacancy and collection losses are expected to be 10% of the gross rent.  What is the effective gross income multiplier?

$100,000 – $10,000 = $90,000 (EGI)

$500,000 ÷ $90,000 = 5.6