Real Estate Math

A North Dakota duplex has potential annual income of $24,000. With a 5% vacancy rate and $8,000 in expenses, what is the NOI?

A$14,800✓ Correct
B$15,000
C$14,200
D$15,800

Explanation

EGI = $24,000 × (1 − 5%) = $22,800. NOI = $22,800 − $8,000 = $14,800.

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