Real Estate Math
A property has potential gross income of $72,000, a 4% vacancy rate, and operating expenses of $22,000. The NOI is:
A$47,120✓ Correct
B$50,000
C$47,200
D$44,080
Explanation
EGI = $72,000 x (1 - 0.04) = $72,000 x 0.96 = $69,120. NOI = $69,120 - $22,000 = $47,120. To solve this, multiply the relevant values: $72,000, and $22,000 at 4%.. The correct answer is $47,120.. This is a common calculation on the North Carolina real estate exam.
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