Real Estate Math
A 6-unit building has monthly gross rents of $1,650 per unit. Vacancy is 5% and operating expenses are $52,000 annually. What is the annual NOI?
A$60,860✓ Correct
B$67,340
C$57,239
D$71,400
Explanation
Annual gross rent = 6 × $1,650 × 12 = $118,800. Vacancy = 5% × $118,800 = $5,940. EGI = $118,800 − $5,940 = $112,860. NOI = $112,860 − $52,000 = $60,860. EGI = $118,800 × 0.95 = $112,860. NOI = $112,860 − $52,000 = $60,860.
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