Real Estate Math

A 10-unit Kentucky apartment building earns $900/unit/month. Operating expenses are 45% of EGI. Vacancy is 8%. What is the annual NOI?

A$54,648✓ Correct
B$59,400
C$60,048
D$63,720

Explanation

Gross income = $900 × 10 × 12 = $108,000. EGI = $108,000 × (1 − 0.08) = $99,360. Operating expenses = $99,360 × 45% = $44,712. NOI = $99,360 − $44,712 = $54,648. Closest: $57,024.

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