Real Estate Math
A property has 6 units each renting for $900/month. Annual operating expenses are $28,000. What is the annual NOI assuming no vacancy?
A$36,800✓ Correct
B$64,800
C$36,000
D$40,000
Explanation
Gross income = 6 × $900 × 12 = $64,800. NOI = $64,800 − $28,000 = $36,800. Using the values given ($900, $28,000), apply the appropriate formula.. The correct answer is $36,800.. This is a common calculation on the Alabama real estate exam.
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