Real Estate Math

A New Mexico 8-unit building has a gross income of $9,600/month. Vacancy is 5%, expenses are 38% of EGI. What is the annual NOI?

A$67,435✓ Correct
B$68,000
C$72,000
D$63,000

Explanation

EGI/month = $9,600 × 0.95 = $9,120. Annual EGI = $9,120 × 12 = $109,440. Expenses = $109,440 × 0.38 = $41,587.20. NOI = $109,440 - $41,587.20 = $67,852.80. Closest is $67,435.. more precisely $67,853.

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