Real Estate Math
A property has a potential gross income of $120,000. Vacancy and collection loss is 8%. Operating expenses are $45,000. What is the NOI?
A$65,400✓ Correct
B$75,000
C$110,400
D$64,400
Explanation
EGI = $120,000 x (1 - 0.08) = $120,000 x 0.92 = $110,400. NOI = EGI - Operating Expenses = $110,400 - $45,000 = $65,400.
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