Real Estate Math
A rental property has a potential gross income of $60,000, a vacancy rate of 5%, and operating expenses of $22,000. What is the NOI?
A$34,000
B$35,000✓ Correct
C$38,000
D$57,000
Explanation
Effective Gross Income = $60,000 × (1 − 0.05) = $57,000. NOI = $57,000 − $22,000 = $35,000. Correct answer is $35,000.
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