Real Estate Math

A Hawaii property has an effective gross income of $80,000 and operating expenses of $32,000. What is the net operating income?

AA. $48,000✓ Correct
BB. $112,000
CC. $32,000
DD. $80,000

Explanation

NOI = Effective Gross Income - Operating Expenses = $80,000 - $32,000 = $48,000. Using the values given ($80,000, $32,000), apply the appropriate formula.. The correct answer is A. $48,000.. This is a common calculation on the Hawaii real estate exam.

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