Real Estate Math

A property generates annual gross rent of $42,000, has a 5% vacancy rate, and operating expenses of $15,000. What is the NOI?

A$24,900✓ Correct
B$25,200
C$27,000
D$22,100

Explanation

Effective gross income = $42,000 × (1 − 0.05) = $39,900.

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