A property has potential gross income of $120,000, vacancy losses of 5%, and operating expenses of $40,000. What is the NOI?
Why $74,000 Is Correct
Answer A: $74,000
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
- In a designated agency arrangement in Delaware, two licensees from the same firm each represent one party. The broker:Agency
- A property sells for $425,000. Delaware transfer tax is 4% of the sale price (split equally between buyer and seller). What is each party's transfer tax obligation?Real Estate Math
- When must a Delaware real estate licensee provide their license number?Delaware License Law
- A month-to-month tenancy in Delaware can be terminated by either party with how much written notice?Property Management
- What additional education must a Delaware salesperson complete to become a broker?Delaware License Law
- In Delaware, when does an agency relationship with a buyer most commonly begin?Agency
- Which fiduciary duty obligates an agent to promptly deliver all offers and information relevant to the transaction?Agency
- A tenancy by the entirety in Delaware:Property Ownership
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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 →