Real Estate Math
A Rhode Island property generates monthly gross rents of $5,000. Operating expenses including maintenance, taxes, and insurance are 40% of gross rents. What is the monthly NOI?
A$2,500
B$3,000✓ Correct
C$3,500
D$4,000
Explanation
Operating expenses: $5,000 x 0.40 = $2,000.
People Also Study
Related Rhode Island Questions
- A property generates $5,200/month gross income. If operating expenses are 38% of gross income, what is the monthly NOI?Real Estate Math
- A Rhode Island rental property has monthly gross rents of $4,500. If the annual vacancy rate is 8%, what is the effective gross income?Real Estate Math
- A Rhode Island property has an annual gross income of $90,000, operating expenses of $35,000, and vacancy losses of $9,000. What is the NOI?Real Estate Math
- A Rhode Island investment property generates annual gross rents of $48,000. Operating expenses are $18,000 and vacancy is 5%. What is the NOI?Real Estate Math
- A Rhode Island property generates $60,000 in annual net operating income. If the cap rate for comparable properties is 6%, what is the indicated value?Property Valuation
- When a Rhode Island appraiser estimates the value of a duplex using the gross rent multiplier method, they divide the sale price of comparables by their annual gross rents to derive the GRM. The subject property has annual gross rents of $30,000 and the market GRM is 12. What is the indicated value?Property Valuation
- What is a 'common area maintenance' (CAM) charge in Rhode Island commercial leases?Property Management
- A Rhode Island property manager collects $8,500 in monthly rents. The management fee is 8% of collected rents. What is the monthly management fee?Property Management
Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
Study This Topic
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →