Real Estate Math

A Great Falls rental property has a monthly gross rent of $1,400 and annual operating expenses of $7,200. What is the annual NOI?

A$9,600✓ Correct
B$16,800
C$9,400
D$8,160

Explanation

Annual gross rent = $1,400 × 12 = $16,800. NOI = $16,800 − $7,200 = $9,600. Using the values given ($1,400, $7,200), apply the appropriate formula.. The correct answer is $9,600.. This is a common calculation on the Montana real estate exam.

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