Real Estate Math
A Kentucky apartment building has 20 units renting at $850/month each. Operating expenses run 48% of EGI. Vacancy is 6%. What is the annual NOI?
A$87,600
B$99,715✓ Correct
C$101,088
D$106,400
Explanation
PGI = 20 × $850 × 12 = $204,000. EGI = $204,000 × 0.94 = $191,760. Operating expenses = $191,760 × 0.48 = $92,045. NOI = $191,760 − $92,045 = $99,715 ≈ $96,048 (closest given rounding).
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