Real Estate Math
A NJ property has a monthly gross income of $6,500, vacancy of 8%, and operating expenses equal to 40% of EGI. What is the monthly NOI?
A$3,588✓ Correct
B$3,120
C$3,900
D$4,500
Explanation
EGI = $6,500 × (1 – 0.08) = $6,500 × 0.92 = $5,980. Monthly operating expenses = $5,980 × 0.40 = $2,392. Monthly NOI = $5,980 – $2,392 = $3,588.
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