Real Estate Math

A property generates annual gross income of $72,000 with a 6% vacancy rate. Annual operating expenses are $22,000. What is the NOI?

A$44,680
B$45,680✓ Correct
C$46,520
D$50,000

Explanation

Effective gross income = $72,000 × (1 − 0.06) = $72,000 × 0.

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