Real Estate Math
A property has a potential gross income of $60,000, vacancy rate of 5%, and operating expenses of $18,000. What is the NOI?
A$37,000
B$39,000✓ Correct
C$41,000
D$43,000
Explanation
EGI = $60,000 - ($60,000 x 5%) = $60,000 - $3,000 = $57,000. NOI = $57,000 - $18,000 = $39,000. To solve this, multiply the relevant values: $60,000, and $18,000 at 5%.. The correct answer is $39,000.. This is a common calculation on the North Carolina real estate exam.
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