Real Estate Math
An Iowa property has potential gross income of $72,000, vacancy loss of 8%, and operating expenses of $28,000. What is the NOI?
A$38,240✓ Correct
B$40,240
C$42,240
D$44,240
Explanation
EGI = $72,000 × (1 − 0.08) = $72,000 × 0.92 = $66,240. NOI = $66,240 − $28,000 = $38,240. To solve this, multiply the relevant values: $72,000, and $28,000 at 8%.. The correct answer is $38,240.. This is a common calculation on the Iowa real estate exam.
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