Real Estate Math
A Colorado property generates gross rents of $48,000/year. Vacancy rate is 8% and operating expenses are $15,000. What is the NOI?
A$27,500
B$28,840
C$29,160✓ Correct
D$33,000
Explanation
Effective Gross Income = $48,000 × (1 − 8%) = $44,160. NOI = $44,160 − $15,000 = $29,160. To solve this, multiply the relevant values: $48,000 and $15,000 at 8%.. The correct answer is $29,160.. This is a common calculation on the Colorado real estate exam.
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