Real Estate Math

A Tulsa rental property has an effective gross income of $72,000 and operating expenses of $28,800. What is the operating expense ratio?

A60%
B40%✓ Correct
C28.8%
D72%

Explanation

Operating Expense Ratio = Operating Expenses ÷ Effective Gross Income. $28,800 ÷ $72,000 = 0.

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