Real Estate Math
A Nebraska apartment building has 12 units renting at $875/month each. Annual vacancy is 8%. Annual expenses are $42,000. The NOI is:
A$73,920✓ Correct
B$57,000
C$63,900
D$67,200
Explanation
Gross income = 12 × $875 × 12 = $126,000. Effective gross income = $126,000 × (1 − 0.
People Also Study
Related Nebraska Questions
- A Nebraska property with 3 rental units each renting for $950/month has a 5% vacancy rate. What is the effective gross income annually?Real Estate Math
- A 5-unit Nebraska apartment building has all units renting for $800/month with a 6% vacancy rate. What is the annual effective gross income?Real Estate Math
- A rental property has annual gross income of $72,000, vacancy of 5%, and operating expenses of $28,000. What is the NOI?Real Estate Math
- An apartment building with 8 units rents each at $750/month. The expense ratio is 45% of EGI and vacancy is 7%. What is the NOI?Real Estate Math
- A Nebraska appraiser determines a property's gross annual income is $60,000 with a 5% vacancy. The effective gross income is:Property Valuation
- Effective gross income (EGI) in the income approach is calculated as:Property Valuation
- A net operating income (NOI) statement for a rental property subtracts from effective gross income:Property Management
- A Nebraska property owner who wants to convert an apartment building to condominiums must comply with:Property Management
Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →