Real Estate Math
A NJ rental property has potential gross income of $90,000, a vacancy rate of 8%, and operating expenses of $25,000. What is the NOI?
A$57,800✓ Correct
B$65,000
C$58,800
D$60,000
Explanation
EGI = $90,000 × (1 – 0.08) = $90,000 × 0.92 = $82,800. NOI = $82,800 – $25,000 = $57,800. To solve this, multiply the relevant values: $90,000, and $25,000 at 8%.. The correct answer is $57,800.. This is a common calculation on the New Jersey real estate exam.
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