Real Estate Math

A Louisiana property has annual gross rents of $54,000, a 7% vacancy rate, and a 42% operating expense ratio (applied to effective gross income). What is the annual NOI?

A$29,138.04
B$29,070.24✓ Correct
C$29,160.00
D$31,320.00

Explanation

EGI = $54,000 × (1 − 0.07) = $54,000 × 0.

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