Real Estate Math

A Hawaii property generates monthly rents of $8,500 with annual operating expenses of $42,000. What is the annual NOI?

AA. $60,000✓ Correct
BB. $70,000
CC. $52,000
DD. $58,000

Explanation

Annual gross = $8,500 × 12 = $102,000. NOI = $102,000 - $42,000 = $60,000. Using the values given ($8,500, $42,000), apply the appropriate formula.. The correct answer is A. $60,000.. This is a common calculation on the Hawaii real estate exam.

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