Real Estate Math

A Maine property has a potential gross income of $84,000. The vacancy rate is 6% and operating expenses are $32,000. The net operating income (NOI) is:

A$52,000
B$47,040✓ Correct
C$27,040
D$46,960

Explanation

EGI = $84,000 × (1 − 0.06) = $79,040. NOI = EGI − Operating expenses = $79,040 − $32,000 = $47,040. To solve this, multiply the relevant values: $84,000 and $32,000 at 6%.. The correct answer is $47,040.. This is a common calculation on the Maine real estate exam.

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