Real Estate Math
A property has annual gross rents of $36,000. After a 6% vacancy factor and $15,000 in operating expenses, what is the NOI?
A$18,840✓ Correct
B$19,560
C$21,000
D$33,840
Explanation
Effective Gross Income = $36,000 − ($36,000 × 6%) = $36,000 − $2,160 = $33,840. NOI = $33,840 − $15,000 = $18,840.
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