What is the total annual expenses for a building with a tax of $15,000, insurance of $4,000, maintenance of $10,000, utilities of $6,000, repairs of $3,500, legal fees of $1,500, and management fees at 4% of effective gross income?

To determine the total annual expenses for the building, you need to add together all the listed expenses. These expenses include property tax, insurance, maintenance, utilities, repairs, legal fees, and management fees, which are calculated as a percentage of the effective gross income.

First, let's sum the fixed expenses:

• Property tax: $15,000

• Insurance: $4,000

• Maintenance: $10,000

• Utilities: $6,000

• Repairs: $3,500

• Legal fees: $1,500

Adding these fixed expenses together:

[ 15,000 + 4,000 + 10,000 + 6,000 + 3,500 + 1,500 = 40,000 ]

Now, management fees are calculated as 4% of the effective gross income. To effectively include this in total annual expenses, the effective gross income must be known. For this example, assume the effective gross income is a specific amount from which you calculate management fees. However, since we don't have a specific effective gross income provided, the calculation still emphasizes the importance of including management fees as a recurring expense.

Assuming the effective gross income calculated results in a management fee that, when