Real Estate Math
A NJ investor purchases a 4-unit property for $520,000. Annual gross rent is $72,000 with 8% vacancy. Operating expenses are $28,000. What is the NOI?
A$44,000
B$38,240✓ Correct
C$66,240
D$43,760
Explanation
Effective Gross Income = $72,000 – ($72,000 × 8%) = $72,000 – $5,760 = $66,240. NOI = EGI – Operating Expenses = $66,240 – $28,000 = $38,240.
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