Real Estate Math

A New Mexico property's annual gross income is $72,000 with 8% vacancy. Operating expenses are 35% of effective gross income. What is the NOI?

A$43,056✓ Correct
B$46,800
C$41,688
D$47,520

Explanation

EGI = $72,000 × (1 - 0.08) = $66,240. Operating expenses = $66,240 × 0.35 = $23,184. NOI = $66,240 - $23,184 = $43,056.

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