Property Valuation
A Florida rental property has the following data: Gross annual rent = $60,000; vacancy rate = 7%; operating expenses = $22,000. What is the net operating income?
A$33,800✓ Correct
B$38,000
C$35,800
D$34,200
Explanation
EGI = $60,000 − ($60,000 × 7%) = $60,000 − $4,200 = $55,800. NOI = $55,800 − $22,000 = $33,800.
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