Real Estate Math
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?
A$151,400
B$162,600✓ Correct
C$163,000
D$148,200
Explanation
PGI = 20 × $1,100 × 12 = $264,000. EGI = $264,000 × (1 − 0.
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Key Terms to Know
Net Operating Income (NOI)
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
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