Real Estate Math
A property has gross annual income of $48,000, vacancy losses of $2,400, and operating expenses of $18,000. What is the net operating income (NOI)?
A$24,000
B$27,600✓ Correct
C$30,000
D$32,400
Explanation
Effective Gross Income = $48,000 − $2,400 = $45,600. NOI = $45,600 − $18,000 = $27,600. Using the values given ($48,000,, $2,400,), apply the appropriate formula.. The correct answer is $27,600.. This is a common calculation on the Louisiana real estate exam.
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