Real Estate Math

A Maine commercial property generates $150,000 in gross rental income. After 7% vacancy and $48,000 in operating expenses, the NOI is:

A$91,500✓ Correct
B$93,500
C$95,500
D$96,500

Explanation

EGI = $150,000 × (1 − 0.07) = $150,000 × 0.93 = $139,500. NOI = $139,500 − $48,000 = $91,500. To solve this, multiply the relevant values: $150,000 and $48,000 at 7%.. The correct answer is $91,500.. This is a common calculation on the Maine real estate exam.

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