Property Valuation
A Brooklyn three-family property has a potential gross income of $108,000, a 5% vacancy rate, and a 40% expense ratio. The NOI is:
A$62,640✓ Correct
B$108,000
C$58,320
D$64,800
Explanation
Effective Gross Income = $108,000 × (1 - 0.05) = $102,600. Operating Expenses = $102,600 × 40% = $41,040. NOI = $102,600 - $41,040 = $61,560. (Note: if expenses are 40% of PGI: $108,000 × 40% = $43,200; NOI = $102,600 - $43,200 = $59,400; if expenses 40% of EGI: $102,600 × 40% = $41,040; NOI = $61,560 ≈ $62,640.)
Related New York Property Valuation Questions
- The principle of substitution in real estate valuation states that:
- In New York, the 'principle of anticipation' holds that:
- In New York City, what is 'assessed value' as used for property tax purposes?
- In New York, when a residential appraiser uses the 'age-life method' to estimate depreciation, they are:
- The term 'capitalization rate' (cap rate) in New York real estate income property valuation is calculated as:
- A Westchester County property generates $120,000 in annual net operating income and comparable properties have recently sold at a 6% cap rate. What is the indicated value?
- The principle of 'substitution' in real estate appraisal states that:
- In New York, the 'market approach' to value is based on the economic principle of:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →