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?

A$40,400✓ Correct
B$44,000
C$38,400
D$42,000

Explanation

Effective gross income = $72,000 × (1 − 0.05) = $72,000 × 0.

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