Real Estate Math

A Kansas property's EGI is $75,000 and NOI is $48,000. What is the operating expense ratio?

A36%
B40%✓ Correct
C44%
D48%

Explanation

Operating expenses = $75,000 - $48,000 = $27,000. Expense ratio = $27,000 ÷ $75,000 = 0.

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