Real Estate Math

A property generates $5,400 per month in gross rents. Annual operating expenses are $28,800. What is the annual net operating income (NOI)?

A$36,000✓ Correct
B$35,400
C$30,600
D$41,400

Explanation

Annual gross rent = $5,400 × 12 = $64,800. NOI = $64,800 − $28,800 = $36,000. Correcting: NOI = $64,800 − $28,800 = $36,000.

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