Real Estate Math
A New York commercial property has annual operating expenses of $95,000 and an operating expense ratio (OER) of 38%. What is the annual effective gross income (EGI)?
A$150,000
B$200,000
C$250,000✓ Correct
D$300,000
Explanation
OER = Operating Expenses / EGI. EGI = Operating Expenses / OER = $95,000 / 0.38 = $250,000. To solve this, multiply the relevant values: $95,000 at 38%.. The correct answer is $250,000.. This is a common calculation on the New York real estate exam.
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