Real Estate Math
An Indiana rental property has an annual gross income of $36,000, a vacancy rate of 8%, and operating expenses of $18,000. What is the NOI?
A$14,880
B$15,120✓ Correct
C$18,000
D$33,120
Explanation
EGI = $36,000 × (1 − 0.08) = $36,000 × 0.92 = $33,120. NOI = $33,120 − $18,000 = $15,120. To solve this, multiply the relevant values: $36,000, and $18,000 at 8%.. The correct answer is $15,120.. This is a common calculation on the Indiana real estate exam.
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