Real Estate Math
A Maine investment property generates gross rental income of $60,000 per year. Vacancy and collection losses are 5%, and operating expenses are $20,000. What is the net operating income (NOI)?
A$37,000✓ Correct
B$40,000
C$34,000
D$57,000
Explanation
Effective gross income = $60,000 x (1 - 0.05) = $57,000.
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