Real Estate Math
A buyer purchases a 6-unit apartment building. Each unit rents for $1,100/month. Annual vacancy is 7%. Annual expenses are $28,000. What is the annual NOI?
AA. $51,160
BB. $79,200
CC. $45,836✓ Correct
DD. $47,360
Explanation
Potential Gross Income = 6 units × $1,100 × 12 = $79,200. Vacancy (7%) = $79,200 × 0.
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