Real Estate Math
A Louisiana investment property generates $8,500 monthly gross rent with a 7% vacancy rate and $38,000 in annual operating expenses. What is the annual NOI?
A$57,420✓ Correct
B$64,220
C$51,620
D$68,000
Explanation
Annual gross rent = $8,500 × 12 = $102,000. Vacancy = $102,000 × 7% = $7,140. EGI = $102,000 − $7,140 = $94,860. NOI = $94,860 − $38,000 = $56,860.
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