Real Estate Math

An Oklahoma property generates gross rental income of $3,200/month. Vacancy and credit losses run 5%. Operating expenses are $14,400/year. What is the annual net operating income (NOI)?

A$38,400
B$22,040
C$24,000
D$36,480✓ Correct

Explanation

Gross Annual Rent = $3,200 × 12 = $38,400. Less vacancy (5%) = $38,400 × 0.

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