Real Estate Math
A Massachusetts apartment building has a potential gross income of $180,000, a vacancy rate of 5%, and operating expenses of $72,000. The net operating income (NOI) is:
A$99,000✓ Correct
B$108,000
C$117,000
D$180,000
Explanation
Effective Gross Income = $180,000 × (1 − 5%) = $171,000. NOI = $171,000 − $72,000 = $99,000. To solve this, multiply the relevant values: $180,000, and $72,000 at 5%.. The correct answer is $99,000.. This is a common calculation on the Massachusetts real estate exam.
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