Real Estate Math

A Colorado duplex has two units, each renting for $1,350/month. Annual operating expenses total $12,000. What is the annual NOI assuming 100% occupancy?

A$16,200
B$20,400✓ Correct
C$24,400
D$32,400

Explanation

Annual gross income = 2 units × $1,350 × 12 = $32,400. NOI = $32,400 − $12,000 = $20,400.

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