Real Estate Math
An Oklahoma lender uses the income approach to qualify a rental property for financing. The property has gross rents of $2,800/month. The lender applies a 25% vacancy/expense factor. What is the qualifying net income used for the debt service calculation?
A$2,800
B$2,100✓ Correct
C$700
D$2,240
Explanation
Net qualifying income = Gross Rents × (1 − Expense Factor). $2,800 × (1 − 0.25) = $2,800 × 0.75 = $2,100/month.
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