A duplex in Juneau generates monthly rents of $1,400 and $1,500. Annual operating expenses are $9,600. What is the annual NOI?
Why $25,200 Is Correct
Answer B: $25,200
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Alaska Questions
- An Alaska property generates annual gross rental income of $36,000. The vacancy and collection loss is estimated at 5%, and operating expenses are $12,000. What is the net operating income (NOI)?Property Valuation
- An Alaska property generates annual gross rents of $72,000. The vacancy rate is 5% and operating expenses equal 40% of effective gross income. What is the NOI?Real Estate Math
- A triplex in Alaska generates monthly rents of $1,400, $1,550, and $1,350. Annual vacancy is 8%. Operating expenses are $18,000 per year. What is the annual NOI?Real Estate Math
- A property generates annual net operating income (NOI) of $60,000. Using a capitalization rate of 8%, the estimated value using the income approach is:Property Valuation
- An investor purchases an Alaska property for $250,000 and wants a 12% annual return on investment. The monthly net operating income must be at least:Real Estate Math
- An Alaska investor purchases a fourplex for $600,000. Each unit rents for $1,200/month. The vacancy rate is 8% and annual operating expenses are $28,000. What is the NOI?Real Estate Math
- An Alaska property has a gross potential income of $96,000. After deducting a 5% vacancy allowance and $32,000 in operating expenses, the NOI is:Property Valuation
- A property has an EGI of $120,000 and operating expenses of $48,000. What is the net operating income (NOI)?Property Valuation
Key Terms to Know
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →