Real Estate Math

A Lexington commercial property earns $120,000 annual gross rent. After a 7% vacancy deduction and $30,000 operating expenses, what is the NOI?

A$78,000
B$81,600✓ Correct
C$84,000
D$90,000

Explanation

EGI = $120,000 × (1 − 0.07) = $111,600.

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