Real Estate Math

A duplex in Richmond, Indiana generates $1,200/month from each unit. Annual operating expenses are $9,600. What is the annual NOI?

A$14,400
B$18,000
C$19,200✓ Correct
D$28,800

Explanation

Annual gross income = 2 × $1,200 × 12 = $28,800. NOI = $28,800 − $9,600 = $19,200. The correct answer is $19,200.

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