Real Estate Math
A NJ apartment building has 10 units, each renting for $1,500/month. Operating expenses are 40% of gross income. What is the annual NOI (assuming 100% occupancy)?
A$180,000
B$108,000✓ Correct
C$72,000
D$90,000
Explanation
Annual Gross Income = 10 × $1,500 × 12 = $180,000. Operating Expenses = $180,000 × 40% = $72,000. NOI = $180,000 – $72,000 = $108,000.
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