Real Estate Math
A Minnesota duplex generates $2,200/month in total rent ($1,100 per unit). Annual expenses are $9,600. What is the annual NOI?
A$16,800✓ Correct
B$17,400
C$26,400
D$36,000
Explanation
Annual gross rent = $2,200 x 12 = $26,400. NOI = $26,400 - $9,600 = $16,800. For small residential investment properties in Minnesota, NOI analysis helps investors evaluate cash flow and potential return. This is a common calculation on the Minnesota real estate exam.
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