Real Estate Math

A Hawaii property has annual gross potential income of $150,000 with a 4% vacancy rate and $55,000 in operating expenses. What is the NOI?

AA. $95,000
BB. $89,000✓ Correct
CC. $88,000
DD. $90,000

Explanation

EGI = $150,000 × (1-0.04) = $144,000.

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