Real Estate Math
A property with potential gross income of $60,000, vacancy rate of 10%, and operating expenses of $18,000 has an NOI of:
A$42,000
B$36,000✓ Correct
C$40,000
D$54,000
Explanation
Vacancy loss = $60,000 × 10% = $6,000. EGI = $60,000 − $6,000 = $54,000. NOI = $54,000 − $18,000 = $36,000.
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