Real Estate Math

A Hawaii rental property collects $4,400/month in rent. Annual operating expenses (not including mortgage) are $18,000. What is the monthly NOI?

AA. $2,900✓ Correct
BB. $2,900
CC. $3,100
DD. $2,700

Explanation

Annual NOI = ($4,400 × 12) - $18,000 = $52,800 - $18,000 = $34,800. Monthly NOI = $34,800 / 12 = $2,900.

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