Real Estate Math

A New Mexico property generates monthly gross rent of $3,600. The annual operating expenses are $18,000. What is the annual NOI?

A$24,000
B$25,200✓ Correct
C$25,800
D$43,200

Explanation

Annual gross rent = $3,600 x 12 = $43,200. NOI = Annual Gross Rent - Operating Expenses = $43,200 - $18,000 = $25,200.

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