Real Estate Math

A Louisville rental property generates $2,400 per month in gross rent. Annual operating expenses are $14,400. What is the annual net operating income (NOI)?

A$12,000
B$14,400✓ Correct
C$28,800
D$12,240

Explanation

Annual gross rent = $2,400 × 12 = $28,800. NOI = Gross Rent − Operating Expenses = $28,800 − $14,400 = $14,400.

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