Real Estate Math

A NH home has a gross potential income of $24,000/year, a 5% vacancy rate, and operating expenses of $8,000. What is the NOI?

A$14,800✓ Correct
B$16,000
C$14,600
D$22,800

Explanation

Effective Gross Income = $24,000 × (1 − 0.05) = $22,800.

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