Real Estate Math
A rental property has a potential gross income of $60,000, vacancy and collection loss of 8%, and operating expenses of $22,000. What is the Net Operating Income (NOI)?
AA. $38,000
BB. $33,200✓ Correct
CC. $55,200
DD. $32,800
Explanation
Effective Gross Income = $60,000 × (1 - 0.08) = $55,200.
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