Real Estate Math
A property has a potential gross income of $80,000, a 5% vacancy allowance, and operating expenses of $28,000. What is the NOI?
A$48,000✓ Correct
B$52,000
C$40,800
D$47,000
Explanation
Effective gross income = $80,000 − ($80,000 × 5%) = $80,000 − $4,000 = $76,000. NOI = $76,000 − $28,000 = $48,000.
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