Real Estate Math
A Pennsylvania property has a potential gross income of $120,000, a 5% vacancy rate, and operating expenses of $48,000. What is the operating expense ratio?
A40%
B42.1%✓ Correct
C35%
D44%
Explanation
EGI = $120,000 × (1 − 0.05) = $120,000 × 0.
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