Real Estate Math
A 20-unit apartment complex has gross rents of $30,000/month. Operating expenses are 45% of effective gross income. Vacancy is 5%. What is the annual NOI?
A$178,200
B$198,000
C$189,000✓ Correct
D$148,500
Explanation
Annual PGI = $30,000 × 12 = $360,000. EGI = $360,000 × (1 − 0.05) = $342,000. Operating expenses = $342,000 × 45% = $153,900. NOI = $342,000 − $153,900 = $188,100. The55 = $188,100.
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