Real Estate Math

A Maine duplex generates $2,200/month per unit. Annual operating expenses total $14,400. What is the annual NOI?

A$38,400✓ Correct
B$52,800
C$32,640
D$12,000

Explanation

Gross income = 2 units x $2,200 x 12 months = $52,800. NOI = $52,800 - $14,400 = $38,400. Using the values given ($2,200, $14,400), apply the appropriate formula.. The correct answer is $38,400.. This is a common calculation on the Maine real estate exam.

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