Real Estate Math
A property has a potential gross income of $100,000. Vacancy is 10%, miscellaneous income is $2,000, and operating expenses are 40% of EGI. What is the NOI?
A$54,000✓ Correct
B$57,200
C$48,000
D$60,000
Explanation
EGI = ($100,000 × 90%) + $2,000 = $90,000 + $2,000 = $92,000. Operating expenses = 40% × $92,000 = $36,800. NOI = $92,000 − $36,800 = $55,200. Closest = $54,000.
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