Real Estate Math
An Alabama income property has a gross income of $60,000, vacancy losses of $3,000, and operating expenses of $22,000. What is the NOI?
A$38,000
B$35,000✓ Correct
C$37,000
D$40,000
Explanation
Effective Gross Income = $60,000 − $3,000 = $57,000. NOI = $57,000 − $22,000 = $35,000. Using the values given ($60,000,, $3,000,), apply the appropriate formula.. The correct answer is $35,000.. This is a common calculation on the Alabama real estate exam.
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