A building in Delaware has 20 apartment units renting at $1,100/month each. Annual vacancy is 6%. Annual operating expenses are $85,000. What is the NOI?
Why $162,600 Is Correct
Answer B: $162,600
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Delaware Questions
- A 6-unit apartment building grosses $7,200 per month in rent. Annual operating expenses total $28,800. What is the annual net operating income?Real Estate Math
- What does it mean when a deed is 'recorded'?Escrow & Title
- A Delaware apartment building has 8 units renting at $950/month. The building sold for $912,000. What is the gross rent multiplier (GRM)?Real Estate Math
- A Delaware apartment building has 12 units. Eight units rent for $950/month and four units rent for $1,100/month. What is the annual potential gross income (PGI)?Real Estate Math
- A Delaware rental property generates annual gross rents of $48,000 with a 5% vacancy rate. Operating expenses total $22,000. What is the NOI?Real Estate Math
- Reproduction cost in the cost approach is the cost to:Property Valuation
- Which type of mortgage loan is insured by the Federal Housing Administration?Finance
- A property's land-to-building value ratio is important in the cost approach because:Property Valuation
Key Terms to Know
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →